As the length of the unexpired term of a Bideford residential lease decreases so does its value and therefore the value of your property. Where the residual term has, in excess of 99 years to run then this decrease may be negligible that being said there will become a point in time when a lease has under than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should extend the lease without delay. Most flat owners in Bideford will meet the qualifying criteria; that being said a conveyancer can advise if you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is generally considered that a residential leasehold with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Bideford,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Bideford valuers.
After protracted negotiations with the freeholder of her garden flat in Bideford, Abigail initiated the lease extension process as the eighty year mark was fast coming. The legal work completed in July 2008. The freeholder’s fees were restricted to a tad over 450 GBP.
In 2009 we were phoned by Ms L Khan who, having was assigned a lease of a ground floor flat in Bideford in June 2012. We are asked if we could shed any light on how much (roughly) premium would be to extend the lease by ninety years. Identical properties in Bideford with 100 year plus lease were worth £267,600. The mid-range amount of ground rent was £65 invoiced annually. The lease terminated in 2092. Having 67 years left we estimated the premium to the freeholder for the lease extension to be within £14,300 and £16,400 plus professional charges.
Dr Hunter White acquired a basement apartment in Bideford in July 2004. The question was if we could shed any light on how much (roughly) price would likely be to prolong the lease by ninety years. Comparative properties in Bideford with 100 year plus lease were worth £206,200. The average ground rent payable was £60 billed quarterly. The lease finished in 2081. Having 56 years unexpired we estimated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 not including costs.