When it comes to long leasehold property in Bingley, you are actually buying a right to live in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive especially when there are less than 80 years left. Leasehold owners in Bingley with a lease drawing near to 81 years remaining should seriously think of extending it without delay. When a lease has below eighty years remaining, under the current statute the freeholder is entitled to calculate and charge a larger premium, based on a technical multiplication, known as “marriage value” which is due.
Leasehold premises in Bingley with in excess of 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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; |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
The conveyancers that we work with procure Bingley lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Subsequent to lengthy correspondence with the landlord of her basement apartment in Bingley, Maisie initiated the lease extension process as the eighty year deadline was quickly advancing. The legal work was finalised in September 2005. The landlord’s fees were kept to an absolute minimum.
In 2013 we were called by Mr Aaron Johnson who, having acquired a one bedroom apartment in Bingley in September 2006. We are asked if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Comparative flats in Bingley with an extended lease were in the region of £270,000. The mid-range ground rent payable was £55 invoiced every twelve months. The lease ended on 24 October 2101. Given that there were 75 years unexpired we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus fees.
In 2011 we were e-mailed by Mr and Mrs. F Martin who, having took over the lease of a first floor flat in Bingley in March 2005. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by an additional years. Comparable homes in Bingley with an extended lease were worth £168,800. The mid-range ground rent payable was £60 billed per annum. The lease lapsed on 6 June 2081. Taking into account 55 years outstanding we estimated the premium to the landlord for the lease extension to be within £30,400 and £35,200 plus costs.