Bideford leases on residential deteriorating in value. if your lease has in the region of ninety years unexpired, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for your lease extension to take place before the term of the existing lease falls lower than eighty years - otherwise a higher amount will be due. Flat owners in Bideford will mostly be legally entitled to a lease extension; however a solicitor will check if you qualify. In some cases you may not qualify. There are also strict timetables and procedures to comply with once the process has started so it’s prudent to be guided by a lawyer during the process.
Leasehold residencies in Bideford with more than 100 years outstanding on the lease are often regarded as a ‘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 upside in buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 procure guidance from a conveyancer 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 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.
Last year Harvey, started to get near to the 80-year mark with the lease on his basement flat in Bideford. In buying his home two decades ago, the unexpired term was of no relevance. Thankfully, he realised he needed to take action soon on Extending the lease. Harvey arranged for a lease extension at the eleventh hour last January. Harvey and the freeholder via the managing agents ultimately agreed on an amount of £5,500 . If he had missed the deadline, the premium would have become more exhorbitant by at least £875.
Mrs I Ricardo completed a purpose-built apartment in Bideford in February 1997. We are asked if we could estimate the compensation to the landlord would be for a 90 year lease extension. Identical flats in Bideford with a long lease were valued around £275,000. The average amount of ground rent was £65 invoiced monthly. The lease expired on 20 August 2094. Having 68 years unexpired we estimated the premium to the landlord for the lease extension to be between £12,400 and £14,200 plus expenses.
Dr B Girard bought a purpose-built apartment in Bideford in September 2010. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by 90 years. Comparative premises in Bideford with a long lease were valued about £213,600. The mid-range ground rent payable was £60 collected quarterly. The lease lapsed in 2083. Taking into account 57 years left we estimated the premium to the landlord for the lease extension to be within £30,400 and £35,200 exclusive of expenses.