The only way is down when it comes to Bodmin lease terms. Bodmin properties that have a lease term shorter than eighty years will drop in market price at a rapid rate, and the cost to extend your lease will go up.
Leasehold residencies in Bodmin with in excess of one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with undertake Bodmin lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
After protracted discussions with the freeholder of her two bedroom flat in Bodmin, Isabel started the lease extension process as the 80 year threshold was quickly advancing. The transaction completed in May 2015. The freeholder’s costs were negotiated to below 700 pounds.
In 2011 we were contacted by Mr Gabriel Davis who, having acquired a studio apartment in Bodmin in April 2001. The dilemma was if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Similar homes in Bodmin with an extended lease were in the region of £198,800. The mid-range amount of ground rent was £55 billed every twelve months. The lease terminated in 2081. Considering the 55 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £33,300 and £38,400 plus costs.
In 2014 we were called by Ms Leah Collins who, having purchased a first floor apartment in Bodmin in June 2004. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Identical flats in Bodmin with 100 year plus lease were worth £295,000. The average ground rent payable was £50 collected every twelve months. The lease came to a finish on 6 September 2101. Considering the 75 years left we estimated the premium to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of legals.