As the length of the unexpired term of a Bideford residential lease lessens so does its value and therefore the value of your property. If the lease has, beyond 125 years remaining then this decrease may be fractional that being said there will become a point in time when a lease has less than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main reason why you should extend the lease without delay. Many flat owners in Bideford will qualify for this right; that being said a conveyancing solicitor will be able to advise if you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold premises in Bideford with over one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Retaining our service will provide you enhanced control over the value of your Bideford leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Following lengthy discussions with the landlord of her two bedroom apartment in Bideford, Daisy initiated the lease extension process just as the lease was approaching the all-important eighty-year threshold. The legal work was finalised in February 2007. The landlord’s costs were kept to an absolute minimum.
In 2009 we were phoned by Dr K Bonnet who, having acquired a garden flat in Bideford in March 2008. We are asked if we could shed any light on how much (approximately) premium would be for a 90 year extension to my lease. Identical premises in Bideford with 100 year plus lease were in the region of £205,000. The mid-range ground rent payable was £50 collected quarterly. The lease lapsed in 2103. Considering the 78 years unexpired we estimated the premium to the landlord for the lease extension to be within £7,600 and £8,800 not including costs.
In 2012 we were approached by Mr and Mrs. S Ramírez who, having completed a first floor apartment in Bideford in July 1995. We are asked if we could shed any light on how much (roughly) price would be to extend the lease by a further 90 years. Similar premises in Bideford with an extended lease were in the region of £267,600. The mid-range amount of ground rent was £65 billed every twelve months. The lease terminated on 26 June 2092. Having 67 years unexpired we estimated the premium to the freeholder for the lease extension to be between £14,300 and £16,400 plus expenses.