The market value of Bodfari leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate materialy once the unexpired lease term is below than eighty years
It is generally considered that a property with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the residence will be equivalent in value to a freehold for decades to come.
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Lease extensions in Bodfari can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor 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 in-depth market knowledge procuring Bodfari lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Daniel, came dangerously close to the eighty-year threshold with the lease on his studio flat in Bodfari. Having purchased his home two decades ago, the unexpired term was of little interest. As luck would have it, it dawned on him that he needed to take action soon on Extending the lease. Daniel was able to extend his lease at the eleventh hour last August. Daniel and the freeholder subsequently agreed on an amount of £5,000 . If the lease had slipped below 80 years, the price would have gone up by at least £975.
Last Spring we were contacted by Mr and Mrs. L Lambert , who purchased a one bedroom flat in Bodfari in June 2000. The dilemma was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Similar flats in Bodfari with an extended lease were worth £173,800. The average amount of ground rent was £65 invoiced every twelve months. The lease finished in 2081. Taking into account 55 years outstanding we calculated the compensation to the landlord for the lease extension to be between £31,400 and £36,200 exclusive of fees.
Mr and Mrs. T Díaz completed a basement flat in Bodfari in January 1997. The question was if we could shed any light on how much (roughly) price would be for a 90 year lease extension. Identical flats in Bodfari with an extended lease were valued around £235,200. The mid-range amount of ground rent was £45 invoiced annually. The lease ended on 11 August 2092. Having 66 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 plus legals.