With a domestic leasehold property in Bideford, you are actually purchasing a right to live in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may think about extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater notably when there are fewer than 80 years remaining. Leasehold owners in Bideford with a lease approaching 81 years remaining should seriously consider extending it sooner rather than later. Once a lease has under eighty years outstanding, under the current legislation the landlord can calculate and demand a larger premium, assessed on a technical calculation, known as “marriage value” which is payable.
Leasehold premises in Bideford with more than 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 home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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 Bideford can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and surveyor 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 Bideford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Twenty four months ago Ryan, started to get close to the eighty-year threshold with the lease on his ground floor apartment in Bideford. Having bought his property two decades ago, the length of the lease was of little significance. As luck would have it, it dawned on him that he would soon be paying way over the odds for a lease extension. Ryan extended the lease at the eleventh hour last March. Ryan and the landlord who owned the flat above subsequently settled on an amount of £5,500 . If the lease had dropped to less than eighty years, the premium would have become more costly by a minimum £1,075.
Mr and Mrs. Y Nguyen took over the lease of a first floor flat in Bideford in April 2008. The dilemma was if we could shed any light on how much (roughly) premium would likely be for a ninety year extension to my lease. Identical residencies in Bideford with a long lease were worth £233,200. The average ground rent payable was £60 collected quarterly. The lease elapsed in 2087. Considering the 61 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £22,800 and £26,400 exclusive of fees.
Last Summer we were called by Dr Dylan Nelson , who purchased a first floor apartment in Bideford in November 2006. The dilemma was if we could estimate the premium would be to prolong the lease by ninety years. Identical homes in Bideford with an extended lease were valued about £171,800. The average ground rent payable was £55 collected every twelve months. The lease finished in 2076. Having 50 years left we approximated the premium to the landlord for the lease extension to be between £33,300 and £38,400 plus expenses.