Bideford Lease Extension - Free Consultation

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Top reasons for Bideford lease extension


Top reasons for lease extension now:

A Bideford leasehold property depreciates with the years remaining on the lease.

With a domestic leasehold property in Bideford, you are actually purchasing a right to reside in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably once there are less than eighty years remaining. Anyone in Bideford with a lease nearing 81 years unexpired should seriously consider extending it sooner rather than later. When a lease has below 80 years left, under the current Act the freeholder is entitled to calculate and charge a larger amount, assessed on a technical multiplication, strangely termed as “marriage value” which is due.

Bideford property with a lease extension has roughly the same value as a freehold

Leasehold premises in Bideford with over 100 years outstanding 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 service charges merit it.

Lending institutions may not loan monies on a short lease

Banks and building societies are inclined not lend on short residential leases. You are likely to encounter problems if you want to sell your flat in Bideford if the remaining term of your lease is below the criteria set by the majority of mortgage companies. Different lenders have different requirements but in the main they are looking for an unexpired term of at least 65 years.

Lender Requirement
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.
Leeds Building Society 85 years remaining from the start 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
Royal Bank of Scotland Mortgage term plus 30 years.
Virgin 85 years at the time of completion. If it's less, we require it to be extended on or before completion.

Why use us for your lease extension in Bideford?

Using our service gives you increased control over the value of your Bideford leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Bideford Lease Extension Example Cases:

Courtney, Bideford, Devon,

Off the back of lengthy negotiations with the freeholder of her leasehold apartment in Bideford, Courtney commenced the lease extension process as the eighty year threshold was rapidly approaching. The transaction was finalised in September 2005. The freeholder’s charges were kept to an absolute minimum.

Bideford case:

In 2011 we were approached by Mrs V Ricardo who, having completed a recently refurbished apartment in Bideford in February 2010. The dilemma was if we could estimate the premium could be to extend the lease by an additional years. Comparable flats in Bideford with a long lease were worth £205,000. The average ground rent payable was £50 invoiced monthly. The lease terminated on 19 November 2102. Given that there were 78 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 not including costs.

Bideford case:

Dr J Baker completed a one bedroom flat in Bideford in March 2010. We are asked if we could shed any light on how much (approximately) price would likely be for a ninety year lease extension. Identical homes in Bideford with an extended lease were worth £267,600. The mid-range ground rent payable was £65 invoiced annually. The lease terminated in 2091. Given that there were 67 years unexpired we calculated the compensation to the landlord to extend the lease to be within £14,300 and £16,400 plus costs.