Unfortunately that a Bideford residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Bideford property market.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. If lease term dips below eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property The majority of flat owners in Bideford will be able to extend under the legislation; however a lawyer will be able to confirm if you qualify for an extension. In some cases you may not be entitled. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancer for the duration of the process.
Leasehold residencies in Bideford with more than one hundred years unexpired on the lease are often regarded as a ‘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 buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Birmingham Midshires | |
| Chelsea Building Society | |
| Godiva Mortgages | |
| Royal Bank of Scotland |
Lease extensions in Bideford can be a difficult process. We recommend you get professional help from a lawyer and valuer well versed in the legislation and lease extension process.
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 a wealth of experience dealing with Bideford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing lengthy discussions with the freeholder of her first floor flat in Bideford, Mollie commenced the lease extension process as the eighty year deadline was swiftly coming. The lease extension was finalised in January 2012. The freeholder’s costs were negotiated to about 500 GBP.
In 2013 we were e-mailed by Dr Lily Brooks who, having bought a basement flat in Bideford in April 1999. The dilemma was if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Identical flats in Bideford with 100 year plus lease were valued around £240,600. The mid-range amount of ground rent was £65 collected per annum. The lease concluded on 17 September 2088. Given that there were 62 years as a residual term we calculated the premium to the landlord to extend the lease to be between £21,900 and £25,200 not including fees.
Last October we were called by Mr Jayden Carter , who owned a basement flat in Bideford in November 1995. We are asked if we could shed any light on how much (approximately) premium could be to prolong the lease by a further 90 years. Similar flats in Bideford with a long lease were valued around £181,600. The mid-range ground rent payable was £55 invoiced monthly. The lease expired in 2078. Having 52 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £30,400 and £35,200 plus fees.