Bilborough leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Bilborough residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Bilborough you would be well advised to check if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension sharply increases as part of the premium you pay is what is known as a marriage value
Leasehold residencies in Bilborough with in excess of 100 years remaining on the lease are often regarded as a ‘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 purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Bilborough can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
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 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.
Last year Tyler, started to get close to the 80-year mark with the lease on his two bedroom apartment in Bilborough. In buying his home two decades ago, the lease term was of little concern. Luckily, it dawned on him that he needed to take action soon on a lease extension. Tyler arranged for a lease extension just in the nick of time in June. Tyler and the landlord subsequently settled on an amount of £6,000 . If the lease had descended lower than eighty years, the price would have gone up by at least £900.
Last Autumn we were approach by Mr Kyle Gray , who bought a basement flat in Bilborough in January 2012. The dilemma was if we could shed any light on how much (roughly) premium would likely be to prolong the lease by an additional years. Comparative homes in Bilborough with a long lease were in the region of £260,200. The average amount of ground rent was £65 invoiced every twelve months. The lease elapsed on 2 January 2092. Given that there were 66 years left we estimated the premium to the freeholder to extend the lease to be within £16,200 and £18,600 not including costs.
Last Spring we were contacted by Ms U Williams , who was assigned a lease of a purpose-built flat in Bilborough in August 2009. We are asked if we could estimate the premium could be for a 90 year lease extension. Similar residencies in Bilborough with a long lease were valued around £198,800. The mid-range ground rent payable was £55 invoiced monthly. The lease expired in 2081. Having 55 years left we estimated the premium to the landlord to extend the lease to be within £33,300 and £38,400 plus expenses.