It’s a harsh truth that a Bilborough residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Bilborough property market.Once your lease nears 85ish years, you should start thinking about a lease extension. If lease term slips under 80 years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most flat owners in Bilborough will be able to extend under the legislation; however a conveyancer will be able to confirm whether you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer for the duration of the formalities.
Leasehold properties in Bilborough with more than 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Birmingham Midshires | |
| Leeds Building Society | |
| Skipton Building Society | |
| Royal Bank of Scotland |
Retaining our service gives you better control over the value of your Bilborough leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Omar owned a 2 bedroom apartment in Bilborough being sold with a lease of just over 72 years unexpired. Omar informally spoke with his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Omar to invoke his statutory right. Omar obtained expert legal guidance and was able to make a more informed decision and deal with the matter and readily saleable.
Last Christmas we were approach by Mrs F Richardson , who was assigned a lease of a newly refurbished apartment in Bilborough in January 2008. The question was if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Similar residencies in Bilborough with 100 year plus lease were in the region of £191,400. The average amount of ground rent was £55 collected yearly. The lease finished in 2080. Having 54 years left we estimated the compensation to the landlord for the lease extension to be within £34,200 and £39,600 exclusive of fees.
In 2009 we were called by Mr and Mrs. I González who, having owned a studio apartment in Bilborough in January 2011. We are asked if we could estimate the premium would likely be for a ninety year extension to my lease. Comparable premises in Bilborough with a long lease were valued around £295,000. The average amount of ground rent was £45 billed yearly. The lease ran out on 20 July 2100. Taking into account 74 years outstanding we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus legals.