When it comes to long leasehold premises in Bodfari, you are actually buying an entitlement to live in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately greater particularly once there are fewer than 80 years left. Anyone in Bodfari with a lease drawing near to 81 years unexpired should seriously consider extending it without delay. When a lease has below 80 years outstanding, under the relevant legislation the freeholder is entitled to calculate and levy a larger premium, based on a technical computation, known as “marriage value” which is due.
Leasehold premises in Bodfari with in excess of 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Yorkshire 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. |
Lease extensions in Bodfari can be a difficult process. We recommend you get professional help from a lawyer and valuer 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 a wealth of experience dealing with Bodfari lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
William owned a high value flat in Bodfari being marketed with a lease of a few days over 59 years outstanding. William informally spoke with his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were William to invoke his statutory right. William procured expert advice and was able to make a more informed decision and deal with the matter and readily saleable.
Mr Archie Cook was assigned a lease of a basement apartment in Bodfari in March 1996. We are asked if we could shed any light on how much (approximately) price would likely be to extend the lease by 90 years. Similar properties in Bodfari with 100 year plus lease were worth £203,200. The average ground rent payable was £65 billed per annum. The lease ended on 19 May 2087. Given that there were 61 years left we calculated the premium to the freeholder to extend the lease to be within £19,000 and £22,000 exclusive of expenses.
Last month we were approach by Ms Georgia Ali , who was assigned a lease of a studio apartment in Bodfari in May 2009. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by a further 90 years. Identical premises in Bodfari with a long lease were valued around £260,000. The average ground rent payable was £50 billed every twelve months. The lease elapsed on 4 November 2097. Considering the 71 years unexpired we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including fees.