The market value of a leasehold property in Bilborough is impacted by how many years the lease has left to run. If it is close to or less than eighty years you should envisage difficulties on re-sale, so it is recommended to arrange for the lease to be extended before buying. It is ideal to start the lease extension process when a lease still has 82 years to run so that all matters can be addressed prior to the 80 year mark. Statute entitles Bilborough qualifying lessees to obtain a lease extension of ninety years in addition to the remaining length of the lease at a peppercorn rent (that is, rent free). The purpose of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Bilborough with over one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
Lease extensions in Bilborough can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and valuer 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 a wealth of experience procuring Bilborough lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of eight months of lengthy discussions with the landlord of her ground floor flat in Bilborough, Bethany initiated the lease extension process just as her lease was approaching the crucial eighty-year deadline. The transaction completed in February 2014. The landlord’s costs were kept to an absolute minimum.
Mr and Mrs. H Lee purchased a ground floor flat in Bilborough in November 2012. We are asked if we could estimate the premium could be for a 90 year extension to my lease. Identical residencies in Bilborough with an extended lease were valued around £210,000. The average amount of ground rent was £50 collected quarterly. The lease lapsed on 12 August 2106. Considering the 80 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 not including expenses.
In 2011 we were e-mailed by Dr Y Garcia who, having acquired a one bedroom flat in Bilborough in February 1999. The dilemma was if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparative premises in Bilborough with an extended lease were in the region of £275,000. The mid-range amount of ground rent was £45 billed annually. The lease end date was on 12 July 2095. Considering the 69 years remaining we estimated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of costs.