The market value of Bideford leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase materialy once the unexpired lease term is below than 80 years
It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Bideford,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Bideford valuers.
Lewis owned a conversion apartment in Bideford on the market with a lease of just over 59 years remaining. Lewis informally spoke with his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 yearly. Ordinarily, ground rent would not be due on a lease extension were Lewis to invoke his statutory right. Lewis obtained expert advice and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
Mr and Mrs. F Ricardo took over the lease of a one bedroom flat in Bideford in April 2006. The question was if we could shed any light on how much (approximately) premium could be to extend the lease by 90 years. Identical flats in Bideford with an extended lease were in the region of £257,800. The average ground rent payable was £65 collected per annum. The lease concluded on 27 January 2091. Having 65 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £18,100 and £20,800 not including legals.
Mr Thomas Cook purchased a garden flat in Bideford in March 2012. We are asked if we could shed any light on how much (approximately) premium would likely be for a 90 year extension to my lease. Identical homes in Bideford with a long lease were worth £196,400. The mid-range ground rent payable was £55 invoiced monthly. The lease expiry date was on 7 May 2080. Considering the 54 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £35,200 and £40,600 not including professional charges.