The value of Bideford leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate materialy once the unexpired lease term is less than eighty years
Leasehold properties in Bideford with over one hundred years outstanding 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 buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Coventry Building Society | |
| Godiva Mortgages | |
| TSB | |
| The Mortgage Works |
The conveyancing solicitors that we work with handle Bideford 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 conveyancing solicitor we work with provide it.
Subsequent to unsuccessful discussions with the freeholder of her basement apartment in Bideford, Alicia started the lease extension process as the 80 year deadline was fast nearing. The transaction was finalised in July 2015. The landlord’s fees were kept to an absolute minimum.
Last Summer we were phoned by Mr and Mrs. S Martinez , who acquired a garden flat in Bideford in May 1997. The dilemma was if we could approximate the premium could be for a 90 year lease extension. Similar properties in Bideford with 100 year plus lease were worth £265,200. The mid-range ground rent payable was £65 invoiced per annum. The lease terminated on 20 November 2092. Having 66 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £15,200 and £17,600 not including expenses.
In 2009 we were called by Mr and Mrs. E Morgan who, having moved into a one bedroom flat in Bideford in July 2000. We are asked if we could shed any light on how much (approximately) premium would likely be to extend the lease by ninety years. Similar homes in Bideford with an extended lease were valued around £201,200. The average amount of ground rent was £55 billed monthly. The lease ran out in 2082. Having 56 years unexpired we estimated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 not including costs.