With a long leasehold premises in Biddulph, you effectively rent it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater notably when there are less than eighty years remaining. Anyone in Biddulph with a lease approaching 81 years left should seriously consider extending it as soon as possible. Once the lease term has below 80 years left, under the relevant Act the freeholder is entitled to calculate and demand a greater amount, assessed on a technical calculation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
The conveyancers that we work with handle Biddulph 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.
Jonathan owned a high value flat in Biddulph on the market with a lease of fraction over 72 years outstanding. Jonathan on an informal basis contacted his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Jonathan to exercise his statutory right. Jonathan obtained expert legal guidance and was able to make a more informed judgement and deal with the matter and readily saleable.
Last Winter we were approach by Mr Lucas Patel , who purchased a one bedroom apartment in Biddulph in October 2004. We are asked if we could approximate the price would be to prolong the lease by 90 years. Comparable homes in Biddulph with a long lease were valued about £250,000. The average amount of ground rent was £50 billed monthly. The lease lapsed on 25 July 2095. Given that there were 69 years left we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of legals.
Ms Maisie Cooper purchased a purpose-built apartment in Biddulph in March 1998. We are asked if we could estimate the price would likely be to extend the lease by an additional years. Similar residencies in Biddulph with an extended lease were worth £285,000. The mid-range amount of ground rent was £55 billed quarterly. The lease ended in 2106. Having 80 years left we approximated the premium to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of expenses.