The only way is down when it comes to Biggleswade lease terms. Biggleswade flats that have a remaining term less than than eighty years will de-escalate in value at a rapid rate, and the cost to extend your lease will go up.
It is generally considered that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the premises will be equivalent in value to a freehold for many years ahead.
| 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. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
Retaining our service will provide you better control over the value of your Biggleswade leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Max owned a high value flat in Biggleswade being marketed with a lease of a few days over sixty years unexpired. Max on an informal basis spoke with his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Max to exercise his statutory right. Max obtained expert legal guidance and was able to make a more informed judgement and deal with the matter and sell the property.
Last February we were called by Mr and Mrs. F Ali , who acquired a one bedroom flat in Biggleswade in April 2008. We are asked if we could approximate the price would be for a ninety year extension to my lease. Comparable properties in Biggleswade with 100 year plus lease were worth £218,000. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease came to a finish on 27 October 2089. Considering the 63 years left we approximated the compensation to the freeholder for the lease extension to be between £17,100 and £19,800 plus legals.
In 2014 we were phoned by Ms Laura Lefebvre who, having purchased a first floor apartment in Biggleswade in June 2002. We are asked if we could shed any light on how much (roughly) premium could be for a ninety year lease extension. Similar premises in Biggleswade with an extended lease were valued around £265,000. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease ended in 2100. Taking into account 74 years outstanding we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including costs.