It’s a harsh truth that a Bispham residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Bispham property market.Once your lease nears 85ish years, you should start thinking about 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 conveyancing solicitor will be able to confirm whether you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
Leasehold residencies in Bispham with in excess of one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
Regardless of whether you are a tenant or a landlord in Bispham,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Bispham valuers.
Last October Ali, started to get near to the eighty-year mark with the lease on his basement flat in Bispham. In buying his flat two decades ago, the length of the lease was of little bearing. by good luck, he noticed he needed to take action soon on a lease extension. Ali was able to extend his lease just in the nick of time in June. Ali and the freeholder eventually settled on sum of £5,000 . If he had missed the deadline, the price would have become more exhorbitant by a minimum £1,050.
Mr and Mrs. A Brooks completed a one bedroom apartment in Bispham in January 1999. We are asked if we could estimate the premium would be to extend the lease by ninety years. Comparable properties in Bispham with a long lease were in the region of £242,600. The average ground rent payable was £45 billed quarterly. The lease elapsed in 2093. Having 67 years left we calculated the compensation to the freeholder for the lease extension to be within £11,400 and £13,200 plus fees.
In 2010 we were phoned by Mr I Adams who, having moved into a first floor flat in Bispham in March 2007. The question was if we could approximate the premium could be for a 90 year extension to my lease. Comparative homes in Bispham with an extended lease were worth £280,000. The average amount of ground rent was £55 billed per annum. The lease came to a finish in 2104. Having 78 years unexpired we approximated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of legals.