It’s a harsh truth that a Bilborough residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Bilborough property market.Where your lease has approximately ninety years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under 80 years - otherwise a higher premium will be due. Most flat owners in Bilborough will be able to extend under the legislation; however a conveyancer will be able to confirm if you qualify for an extension. In some situations you may not be entitled. There are also strict timetables 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 process.
Leasehold residencies 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 circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Godiva Mortgages | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Bilborough,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Bilborough valuers.
After lengthy discussions with the freeholder of her two bedroom flat in Bilborough, Kirsty started the lease extension process as the 80 year threshold was fast approaching. The transaction completed in August 2010. The landlord’s fees were restricted to less than 550 GBP.
Mr O Anderson purchased a ground floor flat in Bilborough in January 2009. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by ninety years. Identical residencies in Bilborough with 100 year plus lease were valued about £201,200. The mid-range amount of ground rent was £55 collected yearly. The lease finished in 2081. Taking into account 56 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £31,400 and £36,200 not including legals.
In 2012 we were called by Dr Nathan Leroy who, having moved into a recently refurbished flat in Bilborough in October 2003. We are asked if we could approximate the premium would be for a 90 year lease extension. Similar flats in Bilborough with 100 year plus lease were worth £300,000. The mid-range amount of ground rent was £50 collected every twelve months. The lease ended on 28 February 2101. Considering the 76 years outstanding we estimated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of professional charges.