It’s a harsh certainty that a Bingham residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Bingham property prices.Where your lease has approximately ninety years left, you need to start considering 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 dips below 80 years - otherwise a higher premium will be payable. The majority of leasehold owners in Bingham will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you qualify for an extension. In some situations you may not qualify. 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 conveyancing solicitor for the duration of the formalities.
It is generally accepted that a property with more than 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Bingham can be a difficult process. We recommend you get professional help 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 dealing with Bingham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of protracted negotiations with the freeholder of her purpose-built flat in Bingham, Jade commenced the lease extension process as the 80 year mark was quickly nearing. The transaction was finalised in September 2014. The landlord’s charges were negotiated to less than 700 GBP.
In 2011 we were called by Mr and Mrs. A Alexander who, having acquired a first floor apartment in Bingham in July 2003. The dilemma was if we could approximate the price could be to extend the lease by an additional years. Similar residencies in Bingham with a long lease were in the region of £210,000. The mid-range ground rent payable was £50 collected yearly. The lease ended on 1 April 2106. Having 80 years remaining we approximated the premium to the landlord to extend the lease to be between £8,600 and £9,800 plus expenses.
In 2012 we were phoned by Dr Dexter Gray who, having took over the lease of a first floor flat in Bingham in January 2001. The dilemma was if we could estimate the price could be to prolong the lease by ninety years. Comparative premises in Bingham with an extended lease were valued around £275,000. The average ground rent payable was £45 billed quarterly. The lease ran out in 2095. Considering the 69 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 not including legals.