Bidford On Avon leases on domestic deteriorating in value. if your lease has in the region of 90 years remaining, you should start thinking about a lease extension. An important point to note is that it is desirable for your lease extension to be in place before the term of the existing lease drops under 80 years - otherwise a higher amount will be payable. Leasehold owners in Bidford On Avon will mostly be legally entitled to a lease extension; however a solicitor should be able confirm your eligibility. In some cases you may not qualify. There are also strict deadlines and formalities to comply with once the process is initiated so it’s prudent to be guided by a conveyancing solicitor during the process.
Leasehold premises in Bidford On Avon with over 100 years unexpired on the lease are often referred to as ‘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 purchasing the reversionary interest unless savings on ground rent and service charges warrant 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
Regardless of whether you are a tenant or a freeholder in Bidford On Avon,the lease extension experts 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 Bidford On Avon valuers.
Half a year ago Elijah, came perilously near to the 80-year mark with the lease on his leasehold apartment in Bidford On Avon. Having bought his property 19 years previously, the unexpired term was of no relevance. Thankfully, he recognised he would soon be paying an inflated amount for a lease extension. Elijah extended the lease just in the nick of time last July. Elijah and the freeholder via the management company ultimately settled on a premium of £5,000 . If he had missed the deadline, the price would have escalated by at least £925.
Last Summer we were e-mailed by Ms R Thompson , who purchased a first floor apartment in Bidford On Avon in August 2011. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by an additional years. Comparative residencies in Bidford On Avon with a long lease were worth £176,200. The mid-range amount of ground rent was £65 collected quarterly. The lease elapsed in 2082. Considering the 56 years remaining we calculated the premium to the landlord to extend the lease to be within £29,500 and £34,000 plus legals.
Last Christmas we were contacted by Mrs U López , who completed a first floor flat in Bidford On Avon in November 2006. The dilemma was if we could shed any light on how much (roughly) price could be to extend the lease by an additional years. Similar residencies in Bidford On Avon with 100 year plus lease were worth £242,600. The mid-range ground rent payable was £45 billed quarterly. The lease concluded in 2093. Given that there were 67 years remaining we approximated the premium to the landlord to extend the lease to be within £11,400 and £13,200 not including fees.