The basic rule is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Bideford have the legal entitlement to extend the lease for a further ninety years in accordance with Leasehold Reform legislation. Please think carefully before delaying your Bideford lease extension. Shelving the costs today simply increases the amount you will ultimately have to pay to extend the lease.
Leasehold residencies in Bideford with in excess of 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with undertake 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.
Ben owned a high value flat in Bideford on the market with a lease of a little over 61 years remaining. Ben informally approached his landlord a well known London-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Ben to invoke his statutory right. Ben procured expert advice and was able to make an informed judgement and handle with the matter and readily saleable.
Last Winter we were contacted by Mr Hunter Mason , who owned a basement apartment in Bideford in May 1996. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Similar flats in Bideford with an extended lease were in the region of £205,000. The average amount of ground rent was £50 billed annually. The lease concluded in 2104. Considering the 79 years unexpired we estimated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 not including fees.
Last June we were phoned by Mr Oliver Sánchez , who took over the lease of a garden apartment in Bideford in May 2002. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by ninety years. Identical homes in Bideford with 100 year plus lease were worth £275,000. The mid-range amount of ground rent was £65 billed per annum. The lease terminated in 2093. Given that there were 68 years as a residual term we estimated the premium to the landlord to extend the lease to be within £13,300 and £15,400 not including fees.