The nearer a residential lease in Bodfari nears to zero years unexpired, the the greater the reduction in the value of the property. Where the residual term has, over 100 years remaining then this decrease may be negligible that being said there will become a stage when a lease has under than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should consider extending sooner than later. The majority of flat owners in Bodfari will meet the qualifying criteria; that being said a lawyer can advise if you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Bodfari can be a difficult process. We recommend you procure professional help from a lawyer and valuer well versed in the legislation and lease extension process.
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.
Subsequent to protracted negotiations with the freeholder of her studio flat in Bodfari, Abbie started the lease extension process as the eighty year threshold was swiftly advancing. The lease extension completed in November 2009. The landlord’s costs were restricted to about 550 GBP.
In 2013 we were approached by Mr and Mrs. L Scott who, having bought a one bedroom apartment in Bodfari in November 2010. The question was if we could approximate the price could be for a 90 year lease extension. Comparative flats in Bodfari with 100 year plus lease were in the region of £218,000. The mid-range amount of ground rent was £45 collected annually. The lease expiry date was on 18 November 2088. Considering the 63 years unexpired we calculated the premium to the freeholder for the lease extension to be within £17,100 and £19,800 not including costs.
Mr and Mrs. W Nguyen moved into a one bedroom apartment in Bodfari in May 2004. The question was if we could approximate the price would be to prolong the lease by 90 years. Identical flats in Bodfari with a long lease were valued about £265,000. The average amount of ground rent was £50 billed quarterly. The lease terminated in 2099. Considering the 74 years remaining we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus fees.