Biddenham leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. It is the case that most Biddenham tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Biddenham you would be well advised to investigate if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
It is generally considered that a property with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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:
|
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service gives you enhanced control over the value of your Biddenham leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
David owned a high value flat in Biddenham on the market with a lease of fraction over 61 years outstanding. David on an informal basis spoke with his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £100 yearly. Ordinarily, ground rent would not be due on a lease extension were David to exercise his statutory right. David procured expert advice and was able to make an informed decision and handle with the matter and readily saleable.
Mr and Mrs. C Parker was assigned a lease of a ground floor flat in Biddenham in May 2007. We are asked if we could shed any light on how much (roughly) price would be for a ninety year extension to my lease. Comparable homes in Biddenham with an extended lease were worth £193,400. The average amount of ground rent was £65 invoiced monthly. The lease finished on 26 August 2085. Having 59 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £21,900 and £25,200 plus professional charges.
Ms K Bertrand was assigned a lease of a recently refurbished flat in Biddenham in October 2010. The question was if we could shed any light on how much (approximately) price would be for a ninety year lease extension. Comparable flats in Biddenham with a long lease were in the region of £255,000. The average ground rent payable was £50 billed yearly. The lease finished in 2096. Having 70 years unexpired we approximated the premium to the freeholder to extend the lease to be within £10,500 and £12,000 exclusive of costs.