When it comes to domestic leasehold property in Bodmin, you effectively rent it for a certain period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are less than 80 years left. Anyone in Bodmin with a lease approaching 81 years remaining should seriously consider extending it sooner rather than later. When a lease has under 80 years left, under the current legislation the landlord is entitled to calculate and levy a larger premium, based on a technical multiplication, known as “marriage value” which is due.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
| 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. |
Retaining our service gives you increased control over the value of your Bodmin leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to lengthy correspondence with the landlord of her basement flat in Bodmin, Lydia commenced the lease extension process as the eighty year mark was quickly approaching. The legal work was finalised in April 2007. The landlord’s costs were kept to an absolute minimum.
Dr Lewis Carter completed a ground floor flat in Bodmin in March 2000. We are asked if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Identical premises in Bodmin with an extended lease were worth £200,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease lapsed on 16 November 2103. Given that there were 77 years outstanding we calculated the premium to the landlord for the lease extension to be within £8,600 and £9,800 not including expenses.
In 2011 we were contacted by Ms B Hall who, having was assigned a lease of a one bedroom apartment in Bodmin in February 2005. The question was if we could approximate the premium could be for a ninety year lease extension. Comparable properties in Bodmin with a long lease were worth £260,200. The mid-range amount of ground rent was £65 billed quarterly. The lease finished on 18 February 2092. Taking into account 66 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £15,200 and £17,600 exclusive of fees.