With a long leasehold premises in Bodmin, you are in fact renting it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about 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 less than 80 years remaining. Residents in Bodmin with a lease drawing near to 81 years unexpired should seriously consider extending it without delay. When the lease term has below 80 years left, under the relevant statute the freeholder can calculate and demand a larger amount, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a property with more than one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the premises will be worth the same as 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; |
| 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. |
| Halifax | 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. |
Lease extensions in Bodmin can be a difficult process. We recommend you get guidance from a conveyancing solicitor and surveyor 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 in-depth market knowledge procuring Bodmin lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of eight months of protracted negotiations with the freeholder of her studio apartment in Bodmin, Danielle commenced the lease extension process just as the lease was coming close to the crucial 80-year mark. The transaction completed in July 2005. The freeholder’s charges were kept to an absolute minimum.
Last Winter we were e-mailed by Mrs Anna Laurent , who was assigned a lease of a studio apartment in Bodmin in June 2006. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year extension to my lease. Identical properties in Bodmin with 100 year plus lease were valued around £233,200. The mid-range ground rent payable was £60 collected per annum. The lease finished in 2086. Having 61 years outstanding we approximated the compensation to the landlord for the lease extension to be within £22,800 and £26,400 not including legals.
In 2009 we were e-mailed by Mr and Mrs. C André who, having completed a purpose-built apartment in Bodmin in April 2002. The dilemma was if we could shed any light on how much (approximately) premium would likely be for a 90 year extension to my lease. Similar residencies in Bodmin with a long lease were in the region of £166,800. The average ground rent payable was £55 billed monthly. The lease ran out in 2075. Having 50 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £32,300 and £37,400 exclusive of expenses.