It’s an underpublicised certainty that a Biddenham residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Biddenham property prices.Once your lease gets to 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips below eighty years - otherwise a higher amount will be payable. The majority of flat owners in Biddenham will be able to extend under the legislation; however a lawyer should be able to confirm whether you qualify for an extension. In some situations you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancing solicitor for the duration of the process.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with procure 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.
During the course of the last few months Tommy, started to get close to the eighty-year mark with the lease on his two bedroom flat in Biddenham. In buying his flat two decades ago, the length of the lease was of minimal relevance. Luckily, he recognised he needed to take steps soon on a lease extension. Tommy was able to extend his lease just under the wire in July. Tommy and the landlord who owned the flat above ultimately agreed on an amount of £5,500 . If the lease had slid below 80 years, the price would have become more exhorbitant by a minimum £850.
In 2014 we were approached by Ms I Martínez who, having moved into a recently refurbished apartment in Biddenham in November 2000. We are asked if we could shed any light on how much (approximately) premium would be for a 90 year extension to my lease. Similar flats in Biddenham with an extended lease were valued around £173,800. The mid-range amount of ground rent was £65 collected annually. The lease lapsed in 2080. Considering the 55 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 exclusive of professional charges.
Last Christmas we were approach by Mrs Bethan François , who moved into a first floor flat in Biddenham in October 2007. The question was if we could shed any light on how much (approximately) price could be to prolong the lease by an additional years. Comparative properties in Biddenham with an extended lease were worth £235,200. The mid-range ground rent payable was £45 collected annually. The lease ran out on 10 May 2091. Having 66 years unexpired we estimated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 plus costs.