Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will usually be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Bingley. Inevitably, the term of lease remaining reduces as time goes by. This may pass by relatively unnoticed when the flat or house needs to be sold or refinanced. The fewer the years remaining the less it is worth and the more expensive it will be to procure a lease extension. Qualifying long lease owners in Bingley have the legal entitlement to extend the lease for a further 90 years under legislation. Do give due deliberation before putting off your Bingley lease extension. Putting off that expense now only increases the price you will eventually have to pay to extend your lease
Leasehold properties in Bingley with over one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Bingley can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and valuer 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 a wealth of experience dealing with Bingley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing unsuccessful discussions with the landlord of her two bedroom flat in Bingley, Morgan started the lease extension process as the 80 year mark was rapidly coming. The transaction was concluded in July 2005. The freeholder’s fees were kept to an absolute minimum.
In 2014 we were approached by Dr F Fournier who, having completed a first floor flat in Bingley in February 2000. The question was if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparative flats in Bingley with a long lease were in the region of £245,000. The average ground rent payable was £50 billed per annum. The lease lapsed on 2 January 2093. Having 68 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including professional charges.
Mr J Alexander moved into a first floor apartment in Bingley in July 2001. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year lease extension. Comparative flats in Bingley with an extended lease were in the region of £285,000. The mid-range amount of ground rent was £55 invoiced quarterly. The lease expired in 2104. Given that there were 79 years remaining we estimated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 not including costs.