Bickley leases on residential deteriorating in value. if your lease has about ninety years unexpired, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease drops below this level then you begin paying an additional element called marriage value. Leasehold owners in Bickley will usually qualify for a lease extension; however a solicitor will confirm your eligibility. In certain circumstances you may not qualify. There are prescribed timetables and steps to comply with once the process has started so it’s prudent to be guided by a conveyancing solicitor during the process.
Leasehold properties in Bickley with more than one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you increased control over the value of your Bickley leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Eli, came perilously close to the eighty-year threshold with the lease on his two bedroom apartment in Bickley. Having bought his property twenty years previously, the lease term was of minimal bearing. As luck would have it, he noticed he needed to take steps soon on Extending the lease. Eli arranged for a lease extension just ahead of time last September. Eli and the landlord who owned the flat above eventually agreed on an amount of £5,500 . If the lease had gone lower than 80 years, the sum would have escalated by at least £1,050.
Mr and Mrs. Y Williams moved into a garden flat in Bickley in February 2010. We are asked if we could shed any light on how much (roughly) price would likely be to extend the lease by a further 90 years. Comparable homes in Bickley with 100 year plus lease were in the region of £225,400. The average amount of ground rent was £45 invoiced yearly. The lease elapsed in 2089. Taking into account 64 years unexpired we estimated the premium to the freeholder for the lease extension to be within £16,200 and £18,600 exclusive of professional charges.
An example of a Lease Extension matter before the tribunal for a Bickley flat is 1 Southlands Court Southlands Road in September 2013. The Leasehold Valuation Tribunal determined that the premium to be paid by the tenant on the grant of a new lease, in accordance with section 56 and Schedule 13 of the Leasehold Reform, Housing and Urban Development Act 1993 was £30,541 This case related to 1 flat. The unexpired residue of the current lease was 50.57 years.