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. |
Engaging our service will provide you enhanced control over the value of your Bodmin leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
After lengthy discussions with the landlord of her ground floor apartment in Bodmin, Freya initiated the lease extension process as the eighty year deadline was rapidly coming. The transaction was concluded in February 2008. The landlord’s charges were kept to an absolute minimum.
Last month we were e-mailed by Mr and Mrs. R Norbert , who moved into a garden apartment in Bodmin in March 1999. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by 90 years. Similar homes in Bodmin with an extended lease were in the region of £233,200. The average amount of ground rent was £60 billed monthly. The lease end date was in 2086. Taking into account 61 years as a residual term we estimated the premium to the landlord for the lease extension to be within £22,800 and £26,400 not including fees.
In 2014 we were contacted by Dr Stanley Girard who, having bought a first floor apartment in Bodmin in May 2002. We are asked if we could estimate the price would likely be to extend the lease by 90 years. Identical flats in Bodmin with an extended lease were valued about £166,800. The mid-range ground rent payable was £55 invoiced monthly. The lease finished on 5 June 2075. Taking into account 50 years left we calculated the compensation to the freeholder to extend the lease to be between £32,300 and £37,400 exclusive of professional charges.