With a residential leasehold premises in Bickley, you are actually buying an entitlement to live in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should think about a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are fewer than 80 years left. Leasehold owners in Bickley with a lease nearing 81 years unexpired should seriously think of extending it sooner as opposed to later. Once a lease has below 80 years left, under the current Act the landlord is entitled to calculate and charge a greater amount, based on a technical calculation, known as “marriage value” which is due.
Leasehold premises in Bickley with over 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. 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 |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
The conveyancing solicitors that we work with procure 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 conveyancing solicitor we work with provide it.
Two years ago Blake, started to get close to the eighty-year threshold with the lease on his one bedroom apartment in Bickley. In buying his flat 19 years ago, the lease term was of little importance. by good luck, he noticed he needed to take action soon on Extending the lease. Blake extended the lease at the eleventh hour last April. Blake and the freeholder via the management company eventually settled on sum of £5,000 . If the lease had descended to less than 80 years, the premium would have gone up by at least £925.
In 2011 we were e-mailed by Mr and Mrs. V Morris who, having moved into a basement apartment in Bickley in March 2002. The question was if we could estimate the price would be for a ninety year lease extension. Comparable flats in Bickley with a long lease were in the region of £256,600. The average amount of ground rent was £60 collected annually. The lease concluded on 17 July 2078. Given that there were 52 years left we estimated the compensation to the freeholder for the lease extension to be within £39,000 and £45,000 plus 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 was in relation to 1 flat. The unexpired lease term was 50.57 years.