When it comes to long leasehold property in Biddenham, you are actually buying a right to reside in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are fewer than 80 years left. Anyone in Biddenham with a lease approaching 81 years unexpired should seriously think of extending it sooner as opposed to later. When a lease has below eighty years left, under the relevant Act the landlord can calculate and levy a larger amount, based on a technical calculation, known as “marriage value” which is due.
Leasehold residencies in Biddenham with over 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire Building Society | 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. |
Lease extensions in Biddenham can be a difficult process. We recommend you obtain guidance from a lawyer and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Biddenham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Kai, came dangerously near to the 80-year threshold with the lease on his ground floor apartment in Biddenham. Having bought his home twenty years previously, the lease term was of little interest. by good luck, he noticed he would soon be paying an escalated premium for Extending the lease. Kai was able to extend his lease just under the wire in August. Kai and the landlord who owned the flat above subsequently agreed on the final figure of £6,000 . If the lease had fallen below eighty years, the premium would have gone up by at least £1,150.
Mr and Mrs. J Moreau purchased a one bedroom flat in Biddenham in April 2011. The dilemma was if we could estimate the premium could be to extend the lease by 90 years. Comparative residencies in Biddenham with a long lease were valued about £227,800. The mid-range amount of ground rent was £45 collected monthly. The lease ran out on 6 August 2091. Taking into account 65 years left we calculated the premium to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of legals.
Dr C Jones bought a ground floor apartment in Biddenham in January 2010. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Comparable homes in Biddenham with a long lease were in the region of £275,000. The average ground rent payable was £55 invoiced annually. The lease lapsed in 2102. Considering the 76 years remaining we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including legals.