With a residential leasehold premises in Bingham, you effectively rent it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may think about a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably once there are less than eighty years remaining. Leasehold owners in Bingham with a lease nearing 81 years unexpired should seriously consider extending it without delay. When the lease term has below 80 years outstanding, under the current legislation the landlord is entitled to calculate and demand a greater amount, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Lease extensions in Bingham can be a difficult process. We recommend you secure guidance from a conveyancer and surveyor with experience in lease extensions.
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 a wealth of experience procuring Bingham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Rory, came critically near to the eighty-year threshold with the lease on his one bedroom apartment in Bingham. Having bought his property two decades ago, the length of the lease was of minimal importance. Thankfully, it dawned on him that he needed to take steps soon on a lease extension. Rory extended the lease at the eleventh hour in March. Rory and the landlord who owned the flat above eventually agreed on the final figure of £5,500 . If the lease had slid lower than eighty years, the amount would have increased by a minimum £1,075.
In 2014 we were e-mailed by Mr and Mrs. U Díaz who, having took over the lease of a ground floor apartment in Bingham in April 2010. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by a further 90 years. Comparative properties in Bingham with 100 year plus lease were in the region of £240,600. The mid-range ground rent payable was £65 invoiced yearly. The lease terminated in 2088. Given that there were 62 years unexpired we approximated the premium to the freeholder to extend the lease to be between £21,900 and £25,200 not including expenses.
Last Summer we were e-mailed by Mr and Mrs. W Alexander , who acquired a basement flat in Bingham in November 2009. The dilemma was if we could estimate the price would be for a 90 year lease extension. Comparable properties in Bingham with 100 year plus lease were worth £179,200. The mid-range ground rent payable was £55 billed annually. The lease elapsed on 9 July 2077. Taking into account 51 years outstanding we calculated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 exclusive of costs.