The closer a residential lease in Biddenham nears to zero years unexpired, the more it reduces the value of the property. Where the lease has, beyond 99 years to run then this decrease may be fractional nevertheless there will become a stage 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 increase markedly the cost. It is the primary rational as to why you should extend the lease sooner than later. The majority of flat owners in Biddenham will qualify for this right; however a conveyancing solicitor should be able to confirm if you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold residencies in Biddenham with more than one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit 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. |
| Bank of Scotland | 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Irrespective of whether you are a tenant or a landlord in Biddenham,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Biddenham valuers.
Last Summer Sam, came precariously close to the 80-year mark with the lease on his ground floor apartment in Biddenham. In buying his property 19 years ago, the length of the lease was of little relevance. Thankfully, he became aware that he would imminently be paying an inflated amount for a lease extension. Sam was able to extend his lease just under the wire in March. Sam and the landlord in the end agreed on sum of £5,000 . If he failed to meet the deadline, the sum would have increased by a minimum £875.
In 2013 we were phoned by Mr Sebastian Rogers who, having moved into a purpose-built flat in Biddenham in June 1995. We are asked if we could estimate the price could be for a ninety year lease extension. Comparative properties in Biddenham with 100 year plus lease were valued around £173,800. The mid-range amount of ground rent was £60 billed per annum. The lease expiry date was on 11 February 2081. Taking into account 55 years remaining we approximated the compensation to the landlord to extend the lease to be within £31,400 and £36,200 exclusive of professional charges.
In 2009 we were phoned by Ms Catherine Parker who, having took over the lease of a basement apartment in Biddenham in June 2004. The dilemma was if we could approximate the premium would likely be for a 90 year lease extension. Comparative homes in Biddenham with an extended lease were valued around £235,200. The mid-range amount of ground rent was £45 billed every twelve months. The lease ended on 27 February 2092. Having 66 years unexpired we approximated the premium to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of professional charges.