Binstead leases on residential properties are gradually losing value. Where your lease has approximately ninety years left, you should start considering the need for a lease extension. An important point to note is that it is desirable for a lease extension to take place before the term of the current lease drops below 80 years - otherwise a higher premium will be due. Leasehold owners in Binstead will mostly qualify for a lease extension; however a solicitor should be able confirm your eligibility. In certain situations you may not qualify. There are also strict timetables and procedures to comply with once the process has started so it’s best to be guided by a conveyancing solicitor during the process.
It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Binstead,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Binstead valuers.
Last year Felix, started to get close to the 80-year mark with the lease on his ground floor flat in Binstead. In buying his home 18 years ago, the lease term was of little interest. Fortunately, it dawned on him that he would soon be paying an escalated premium for Extending the lease. Felix arranged for a lease extension at the eleventh hour last January. Felix and the freeholder eventually agreed on the final figure of £6,000 . If he not met the deadline, the premium would have increased by at least £925.
In 2010 we were e-mailed by Mr and Mrs. R Pérez who, having was assigned a lease of a garden apartment in Binstead in February 1997. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by ninety years. Comparative premises in Binstead with an extended lease were worth £200,800. The mid-range ground rent payable was £65 collected yearly. The lease ran out in 2085. Given that there were 60 years left we approximated the compensation to the landlord to extend the lease to be within £20,900 and £24,200 not including legals.
In 2014 we were e-mailed by Mr and Mrs. O Alexander who, having was assigned a lease of a first floor flat in Binstead in July 1995. The question was if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Comparable properties in Binstead with an extended lease were worth £255,000. The mid-range ground rent payable was £50 billed quarterly. The lease concluded in 2096. Given that there were 71 years unexpired we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus expenses.