Bispham leases on domestic deteriorating in value. Where your lease has approximately ninety years unexpired, you should start thinking about a lease extension. If lease term falls under eighty years, you will then have to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Bispham will usually be legally entitled to a lease extension; however a solicitor will check your eligibility. In certain cases you may not qualify. There are prescribed timetables and formalities to follow once the process is triggered so it’s wise to be guided by a conveyancing solicitor during the process.
It is generally considered that a property with over 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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. |
| 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. |
Lease extensions in Bispham can be a difficult process. We recommend you obtain professional help 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 in-depth market knowledge procuring Bispham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following protracted negotiations with the landlord of her leasehold apartment in Bispham, Jade initiated the lease extension process as the 80 year deadline was fast advancing. The legal work was finalised in March 2013. The freeholder’s charges were kept to an absolute minimum.
Dr Felix Martínez acquired a recently refurbished flat in Bispham in September 1998. We are asked if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Similar flats in Bispham with 100 year plus lease were in the region of £200,800. The mid-range amount of ground rent was £65 invoiced monthly. The lease expired on 4 July 2086. Considering the 60 years unexpired we approximated the premium to the landlord for the lease extension to be between £20,900 and £24,200 exclusive of fees.
Mr and Mrs. P Rogers took over the lease of a garden apartment in Bispham in January 2003. The question was if we could approximate the price would be for a 90 year lease extension. Comparable properties in Bispham with an extended lease were valued about £255,000. The average amount of ground rent was £50 invoiced per annum. The lease lapsed in 2097. Given that there were 71 years unexpired we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including expenses.