Bilborough leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Legislation has been in place for sometime now which entitles qualifying Bilborough residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Bilborough you really ought to check if your lease has between seventy and 90 years remaining. There are compelling reasons why a Bilborough flat owner with a lease having around eighty years left should take steps to ensure that a lease extension is effected without delay
It is generally considered that a property with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date 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. |
Engaging our service gives you increased control over the value of your Bilborough leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Jasper owned a high value flat in Bilborough on the market with a lease of just over sixty years outstanding. Jasper informally spoke with his landlord being a well known London-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Jasper to invoke his statutory right. Jasper procured expert advice and secured an acceptable deal informally and sell the property.
Ms L Morris owned a one bedroom flat in Bilborough in January 2007. The question was if we could estimate the price would likely be for a 90 year extension to my lease. Identical premises in Bilborough with a long lease were worth £270,000. The average ground rent payable was £65 collected monthly. The lease elapsed in 2094. Considering the 68 years outstanding we approximated the premium to the landlord to extend the lease to be between £12,400 and £14,200 not including expenses.
In 2011 we were phoned by Mr A Carter who, having completed a garden flat in Bilborough in September 2001. The question was if we could estimate the premium could be for a 90 year lease extension. Identical premises in Bilborough with a long lease were valued about £208,600. The mid-range ground rent payable was £60 collected quarterly. The lease ran out in 2083. Given that there were 57 years left we calculated the premium to the landlord to extend the lease to be between £30,400 and £35,200 exclusive of legals.