Bidford On Avon leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. It is the case that most Bidford On Avon tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Bidford On Avon you must investigate if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
Leasehold properties in Bidford On Avon with more than 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 property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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. |
| 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 |
The lawyers 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 conveyancing solicitor we work with provide it.
Trailing protracted correspondence with the freeholder of her two bedroom flat in Bidford On Avon, Jodie initiated the lease extension process as the 80 year deadline was swiftly approaching. The legal work completed in June 2006. The freeholder’s fees were kept to an absolute minimum.
In 2013 we were contacted by Dr Harvey Moore who, having bought a purpose-built flat in Bidford On Avon in June 2005. The dilemma was if we could shed any light on how much (roughly) price could be to prolong the lease by an additional years. Identical properties in Bidford On Avon with an extended lease were in the region of £290,000. The mid-range ground rent payable was £60 billed every twelve months. The lease expired in 2106. Given that there were 80 years left we calculated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of expenses.
In 2010 we were approached by Ms K Brooks who, having moved into a one bedroom apartment in Bidford On Avon in July 2002. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Comparative properties in Bidford On Avon with 100 year plus lease were in the region of £200,800. The average ground rent payable was £65 billed quarterly. The lease terminated on 7 October 2086. Given that there were 60 years outstanding we estimated the compensation to the landlord to extend the lease to be within £20,900 and £24,200 exclusive of costs.