As the the remaining lease term of a Biddenham domestic lease diminished so does its value and therefore the value of your property. Where the lease has, over 125 years remaining then this decrease may be fractional nevertheless there will become a point in time when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should extend the lease without delay. Many flat owners in Biddenham will qualify for this right; that being said a lawyer can advise whether you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold residencies in Biddenham with in excess of 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Leeds Building Society | |
| National Westminster Bank | |
| Santander | |
| Yorkshire Building Society |
The lawyers that we work with undertake Biddenham 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 conveyancer we work with provide it.
Last year Nathaniel, came very close to the eighty-year mark with the lease on his one bedroom apartment in Biddenham. Having purchased his home two decades ago, the length of the lease was of no relevance. Thankfully, he recognised he needed to take action soon on Extending the lease. Nathaniel was able to extend his lease at the eleventh hour in September. Nathaniel and the freeholder eventually settled on a premium of £6,000 . If he not met the deadline, the price would have increased by at least £1,000.
Last Winter we were e-mailed by Mr L Moreau , who purchased a ground floor apartment in Biddenham in June 2001. We are asked if we could estimate the price would likely be for a 90 year extension to my lease. Similar residencies in Biddenham with a long lease were valued around £200,800. The average amount of ground rent was £65 billed annually. The lease finished on 14 September 2086. Taking into account 60 years remaining we calculated the premium to the freeholder to extend the lease to be between £20,900 and £24,200 not including legals.
Dr I André completed a one bedroom apartment in Biddenham in September 1998. We are asked if we could approximate the price would likely be to extend the lease by an additional years. Comparable flats in Biddenham with a long lease were in the region of £255,000. The mid-range ground rent payable was £50 billed yearly. The lease lapsed on 24 June 2097. Having 71 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus fees.