Owning a apartment usually means owning a lease of the property, which has a set term of years. your lease will normally be granted for a fixed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Bingham. Clearly, the period of lease left shortens over time. This may slip by relatively unnoticed when the residence has to be disposed of or refinanced. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease. Qualifying leaseholders in Bingham have the right to extend the lease for an additional 90 years under legislation. Please give due attention before delaying your Bingham lease extension. Holding off the cost now only increases the price you will ultimately incur for a lease extension
It is conventional wisdom that a property with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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 |
Regardless of whether you are a tenant or a landlord in Bingham,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Bingham valuers.
Joseph was the the leasehold owner of a conversion flat in Bingham being marketed with a lease of a few days over 72 years remaining. Joseph informally contacted his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Joseph to invoke his statutory right. Joseph obtained expert legal guidance and secured satisfactory deal informally and readily saleable.
Last June we were e-mailed by Dr Natalie Vincent , who completed a studio flat in Bingham in August 2012. The dilemma was if we could approximate the price would be to prolong the lease by 90 years. Similar flats in Bingham with a long lease were in the region of £171,800. The mid-range amount of ground rent was £55 collected per annum. The lease concluded in 2076. Having 50 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £32,300 and £37,400 exclusive of fees.
Last Summer we were called by Mrs F Reed , who acquired a purpose-built flat in Bingham in March 2011. The question was if we could shed any light on how much (approximately) price would likely be to prolong the lease by 90 years. Comparable residencies in Bingham with a long lease were valued around £280,000. The mid-range ground rent payable was £45 collected monthly. The lease lapsed in 2096. Given that there were 70 years left we approximated the premium to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of fees.