It’s an underpublicised truth that a Bispham residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Bispham property market.Once your lease gets to 85ish years, you need to start considering a lease extension. If lease term slips under 80 years, you will then be required 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 extra value that a lease extension will add the property Most flat owners in Bispham will be able to extend under the legislation; however a conveyancer should be able to clarify if you qualify for an extension. In some cases you may not be entitled. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your lawyer from beginning to end of the formalities.
Leasehold properties in Bispham with over 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value 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 warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Halifax | |
| TSB | |
| The Mortgage Works |
The lawyers that we work with undertake Bispham 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.
After lengthy discussions with the landlord of her first floor apartment in Bispham, Amber initiated the lease extension process just as her lease was nearing the crucial eighty-year mark. The transaction was concluded in August 2007. The freeholder’s costs were kept to an absolute minimum.
In 2012 we were called by Mr and Mrs. H Wilson who, having moved into a purpose-built apartment in Bispham in June 2010. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year lease extension. Comparable flats in Bispham with an extended lease were valued about £265,000. The average amount of ground rent was £55 billed per annum. The lease lapsed in 2100. Considering the 74 years as a residual term we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus expenses.
Last month we were phoned by Mr Jackson Ward , who completed a studio flat in Bispham in January 2011. We are asked if we could estimate the premium could be for a ninety year lease extension. Similar homes in Bispham with a long lease were in the region of £166,400. The average amount of ground rent was £60 collected per annum. The lease lapsed in 2080. Having 54 years unexpired we calculated the premium to the freeholder to extend the lease to be between £32,300 and £37,400 exclusive of legals.