Unfortunately that a Bideford residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Bideford property market.Once your lease gets to 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls lower than 80 years - otherwise a higher premium will be due. The majority of leasehold owners in Bideford will be able to extend under the legislation; however a lawyer should be able to confirm whether you qualify for an extension. In some cases you may not qualify. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your conveyancing solicitor for the duration of the formalities.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | 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. |
Lease extensions in Bideford can be a difficult process. We recommend you secure guidance from a conveyancing solicitor 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 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.
During the course of the last few months Theo, came seriously close to the eighty-year threshold with the lease on his studio flat in Bideford. In buying his home two decades ago, the unexpired term was of minimal bearing. Fortunately, he became aware that he needed to take steps soon on Extending the lease. Theo was able to extend his lease at the eleventh hour in July. Theo and the freeholder via the managing agents ultimately agreed on the final figure of £5,500 . If the lease had slid to less than 80 years, the figure would have increased by a minimum £1,000.
Mr and Mrs. T Hernández acquired a first floor flat in Bideford in February 2004. The question was if we could shed any light on how much (roughly) price would likely be for a ninety year lease extension. Comparable homes in Bideford with an extended lease were worth £295,000. The mid-range amount of ground rent was £45 collected yearly. The lease lapsed on 20 August 2101. Taking into account 75 years left we calculated the premium to the landlord for the lease extension to be within £8,600 and £9,800 plus professional charges.
Ms D Kelly acquired a newly refurbished apartment in Bideford in June 2011. The question was if we could estimate the price would be to prolong the lease by an additional years. Comparative premises in Bideford with a long lease were valued about £250,400. The mid-range ground rent payable was £65 collected quarterly. The lease elapsed in 2090. Considering the 64 years unexpired we approximated the premium to the landlord to extend the lease to be between £19,000 and £22,000 exclusive of expenses.