Bideford leases on residential deteriorating in value. Where your lease has approximately ninety years left, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for a lease extension to be in place before the term of the existing lease dips below 80 years - otherwise a higher premium will be due. Flat owners in Bideford will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancer to check if you qualify. In certain cases you may not be entitled. There are also strict timetables and procedures to comply with once the process has started so it’s wise to be guided by a conveyancer during the process.
Leasehold premises in Bideford with more than 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Bideford,the lease extension solicitors that we work with will always be willing 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.
14 months ago Isaac, came critically close to the 80-year mark with the lease on his one bedroom flat in Bideford. Having purchased his flat two decades ago, the length of the lease was of minimal interest. Thankfully, he became aware that he needed to take action soon on Extending the lease. Isaac was able to extend his lease just in the nick of time last August. Isaac and the landlord subsequently settled on the final figure of £5,000 . If the lease had descended to less than 80 years, the amount would have gone up by at least £1,150.
Last Spring we were contacted by Dr S Roux , who purchased a ground floor apartment in Bideford in April 2004. We are asked if we could approximate the price would be for a ninety year extension to my lease. Identical premises in Bideford with an extended lease were worth £300,000. The average amount of ground rent was £50 collected monthly. The lease ended on 10 May 2102. Taking into account 76 years remaining we approximated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 not including legals.
Mrs Abigail David took over the lease of a newly refurbished flat in Bideford in November 2003. We are asked if we could shed any light on how much (approximately) price would be for a ninety year lease extension. Identical premises in Bideford with an extended lease were in the region of £257,800. The average ground rent payable was £65 billed quarterly. The lease expired in 2091. Taking into account 65 years unexpired we estimated the premium to the freeholder to extend the lease to be between £18,100 and £20,800 not including professional charges.