Bideford leases on domestic properties are gradually losing value. if your lease has in the region of ninety years unexpired, you should start thinking about a lease extension. If lease term dips under 80 years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Bideford will usually be legally entitled to a lease extension; however a solicitor should be able check your eligibility. In some situations you may not qualify. There are prescribed deadlines and procedures to comply with once the process is triggered so it’s best to be guided by a conveyancing solicitor during the process.
It is generally considered that a residential leasehold with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Coventry Building Society | |
| Leeds Building Society | |
| Nationwide Building Society | |
| Skipton Building Society | |
| The Mortgage Works |
Lease extensions in Bideford can be a difficult process. We recommend you get guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Bideford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Andrew was the the leasehold proprietor of a high value apartment in Bideford on the market with a lease of just over fifty eight years remaining. Andrew informally contacted his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £50 annually. No ground rent would be due on a lease extension were Andrew to invoke his statutory right. Andrew procured expert advice and secured an acceptable deal without going to tribunal and sell the flat.
In 2012 we were phoned by Ms Melissa Rogers who, having bought a basement flat in Bideford in June 1997. We are asked if we could approximate the premium would be for a 90 year lease extension. Similar flats in Bideford with a long lease were in the region of £280,000. The average ground rent payable was £45 collected per annum. The lease terminated in 2096. Taking into account 70 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 plus fees.
In 2012 we were contacted by Mr and Mrs. Y Rose who, having was assigned a lease of a garden apartment in Bideford in August 2006. The question was if we could shed any light on how much (approximately) premium would be to prolong the lease by an additional years. Similar properties in Bideford with a long lease were valued around £225,800. The average amount of ground rent was £60 billed annually. The lease finished in 2086. Having 60 years remaining we calculated the compensation to the landlord for the lease extension to be within £25,700 and £29,600 exclusive of fees.