With a residential leasehold property in Bideford, you are in fact renting it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately greater notably once there are less than 80 years remaining. Residents in Bideford with a lease nearing 81 years unexpired should seriously think of extending it sooner as opposed to later. Once a lease has less than 80 years left, under the current legislation the freeholder is entitled to calculate and demand a greater premium, assessed on a technical multiplication, known as “marriage value” which is payable.
Leasehold properties in Bideford with over one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Engaging our service gives you better control over the value of your Bideford leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Harvey was the the leasehold proprietor of a high value flat in Bideford being marketed with a lease of just over fifty eight years remaining. Harvey informally contacted his landlord a well known London-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 per annum. No ground rent would be due on a lease extension were Harvey to invoke his statutory right. Harvey procured expert legal guidance and was able to make an informed decision and deal with the matter and readily saleable.
Last Autumn we were e-mailed by Mr Jayden Morel , who was assigned a lease of a recently refurbished flat in Bideford in July 1998. We are asked if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Identical residencies in Bideford with a long lease were in the region of £189,000. The average ground rent payable was £55 collected yearly. The lease elapsed in 2079. Having 53 years unexpired we calculated the premium to the landlord for the lease extension to be between £28,500 and £33,000 plus costs.
Mr and Mrs. N Norbert was assigned a lease of a newly refurbished flat in Bideford in May 1996. The dilemma was if we could estimate the price would likely be for a ninety year lease extension. Comparable homes in Bideford with 100 year plus lease were worth £290,000. The mid-range ground rent payable was £45 invoiced quarterly. The lease concluded on 1 June 2099. Taking into account 73 years unexpired we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of costs.