When it comes to long leasehold premises in Biggleswade, you are actually buying a right to live in a property for a prescribed time frame. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should 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 notably when there are less than eighty years left. Residents in Biggleswade with a lease approaching 81 years unexpired should seriously think of extending it as soon as possible. When the lease term has below 80 years outstanding, under the relevant statute the landlord is entitled to calculate and charge a greater premium, based on a technical computation, strangely termed as “marriage value” which is due.
Leasehold residencies in Biggleswade with in excess of 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Biggleswade can be a difficult process. We recommend you get professional help from a conveyancing solicitor and surveyor with experience in lease extensions.
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 Biggleswade lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Muhammad owned a conversion apartment in Biggleswade being marketed with a lease of a little over 59 years remaining. Muhammad informally contacted his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 annually. No ground rent would be due on a lease extension were Muhammad to invoke his statutory right. Muhammad procured expert advice and secured satisfactory resolution informally and ending up with a market value flat.
In 2012 we were called by Mr and Mrs. B Morgan who, having moved into a studio flat in Biggleswade in November 1995. The question was if we could estimate the price would likely be to extend the lease by an additional years. Identical residencies in Biggleswade with 100 year plus lease were worth £280,000. The mid-range amount of ground rent was £55 collected annually. The lease terminated on 7 October 2103. Given that there were 78 years unexpired we calculated the premium to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of costs.
Dr E Jones bought a garden flat in Biggleswade in September 2001. The dilemma was if we could approximate the premium could be to extend the lease by an additional years. Comparative residencies in Biggleswade with an extended lease were valued around £191,000. The average amount of ground rent was £65 collected every twelve months. The lease elapsed on 24 April 2083. Considering the 58 years unexpired we calculated the premium to the landlord to extend the lease to be between £23,800 and £27,400 not including costs.