When it comes to residential leasehold premises in Bidford On Avon, you are actually purchasing an entitlement to reside in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may consider a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are less than 80 years left. Residents in Bidford On Avon with a lease drawing near to 81 years left should seriously consider extending it sooner as opposed to later. When a lease has fewer than eighty years left, under the current legislation the landlord can calculate and levy a greater premium, assessed on a technical calculation, known as “marriage value” which is payable.
Leasehold properties in Bidford On Avon with in excess of 100 years unexpired on the lease are often 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 purchasing the freehold unless savings on ground rent and estate charges merit 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with procure Bidford On Avon lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Hunter was the the leasehold proprietor of a high value apartment in Bidford On Avon being marketed with a lease of just over fifty eight years unexpired. Hunter informally spoke with his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Hunter to invoke his statutory right. Hunter obtained expert legal guidance and secured satisfactory resolution without going to tribunal and ending up with a market value flat.
Ms Hannah Bertrand owned a ground floor flat in Bidford On Avon in September 1998. We are asked if we could approximate the price would be for a ninety year extension to my lease. Similar premises in Bidford On Avon with a long lease were valued around £191,000. The average amount of ground rent was £65 collected per annum. The lease lapsed on 2 August 2083. Taking into account 58 years outstanding we calculated the premium to the landlord to extend the lease to be between £23,800 and £27,400 plus expenses.
Dr Mason Hernández purchased a ground floor flat in Bidford On Avon in October 2001. The dilemma was if we could estimate the price would likely be to prolong the lease by a further 90 years. Comparative properties in Bidford On Avon with a long lease were worth £250,000. The average amount of ground rent was £50 collected quarterly. The lease concluded on 3 November 2094. Taking into account 69 years left we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus fees.