With a long leasehold premises in Bodfari, you are actually purchasing an entitlement to reside in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may think about a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are fewer than 80 years remaining. Residents in Bodfari with a lease drawing near to 81 years left should seriously think of extending it as soon as possible. Once the lease term has fewer than 80 years outstanding, under the current Act the freeholder can calculate and charge a larger amount, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service will provide you better control over the value of your Bodfari leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Finley, started to get close to the eighty-year mark with the lease on his purpose- built flat in Bodfari. Having purchased his flat 18 years previously, the unexpired term was of minimal significance. Fortunately, he recognised he needed to take steps soon on Extending the lease. Finley arranged for a lease extension just under the wire last June. Finley and the freeholder in the end agreed on the final figure of £5,000 . If he failed to meet the deadline, the figure would have escalated by a minimum £850.
Last year we were e-mailed by Ms W Martin , who purchased a basement flat in Bodfari in January 2001. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Comparative homes in Bodfari with an extended lease were in the region of £254,200. The mid-range ground rent payable was £60 collected quarterly. The lease finished on 27 July 2076. Considering the 51 years remaining we approximated the compensation to the landlord for the lease extension to be between £43,700 and £50,600 not including expenses.
In 2012 we were approached by Mr E Walker who, having was assigned a lease of a basement flat in Bodfari in November 2006. The question was if we could estimate the price could be to prolong the lease by 90 years. Comparative residencies in Bodfari with an extended lease were valued about £210,600. The mid-range amount of ground rent was £45 collected quarterly. The lease expired in 2087. Considering the 62 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £18,100 and £20,800 plus professional charges.