Bickley leases on residential deteriorating in value. if your lease has about 90 years unexpired, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease falls below this level then you begin paying an additional element called marriage value. Leasehold owners in Bickley will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to check your eligibility. In certain cases you may not qualify. There are also strict timetables and steps to follow once the process has started so it’s sensible to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
|Coventry Building Society||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.|
|Leeds Building Society||85 years remaing from the start of the mortgage.|
|Nationwide Building Society|| Our minimum unexpired lease term is 55 years subject to at least 30 years remaining at the end of the mortgage term.|
Report to the issuing office if the lease term is shorter than that stated on the offer and has less than 100 years remaining. (There is no requirement to report if the lease term is lower than that stated on the offer but still has 100 years or more to run, or if the lease term is longer than that stated on the offer).
NEW BUILD PROPERTIES (includes office conversions)
The following are not acceptable:
- The unexpired lease term is less than 125 years on a new build flat or 250 years on a new build house (does not apply to Shared Ownership)
- Starting ground rent is more than 0.1% of the property value
The lease must be amended to comply with the above. If not the case cannot proceed. Please advise us where the case cannot proceed.
Ground rents and event fees:
Ground rent and other event fees must be reasonable at all times during the lease term. For example, it is acceptable for ground rent escalation to be linked to RPI (Retail Price Index) or a similar index and where this is the case we do not need to be advised. However, unreasonable multipliers of ground rent will not be permitted, for example, doubling every 5, 10 or 15 years. These must be referred to us and we will advise if our mortgage offer remains valid. If you are unsure as to whether the terms of a lease are unreasonable, please refer the details to us.
|TSB||Mortgage term plus 30 years subject to an overall minimum term of 70 years|
|Royal Bank of Scotland||Mortgage term plus 30 years. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower.|
The lawyers that we work with handle Bickley lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
In 2014 Kyle, came critically close to the eighty-year mark with the lease on his leasehold flat in Bickley. In buying his flat two decades ago, the unexpired term was of no significance. Luckily, he realised he needed to take action soon on Extending the lease. Kyle arranged for a lease extension just ahead of time in July. Kyle and the freeholder via the managing agents in the end agreed on the final figure of £5,500 . If the lease had descended lower than 80 years, the premium would have increased by at least £925.
Mr and Mrs. W Petit owned a garden flat in Bickley in March 2004. The dilemma was if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Identical residencies in Bickley with 100 year plus lease were valued around £186,000. The mid-range amount of ground rent was £65 billed every twelve months. The lease ended on 13 June 2077. Having 58 years remaining we approximated the compensation to the freeholder for the lease extension to be between £24,700 and £28,600 plus legals.
An example of a Lease Extension decision 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 was in relation to 1 flat. The remaining number of years on the lease was 50.57 years.