Owning a apartment usually means owning a lease of the property, which has a set term of years. This lease will normally be granted for a prescribed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Bodmin. Inevitably, the term of lease remaining shortens over time. This is often overlooked and only raises itself as an issue when the property has to be sold or refinanced. The shorter the lease the lower the value of the property and the more it will cost to obtain a lease extension. Eligible long lease owners in Bodmin have the right to extend the lease for an additional ninety years under the 1993 Leasehold Reform Act. Do give careful deliberation before putting off your Bodmin lease extension. Holding off the cost now likely increases the price you will eventually incur to extend your lease
Leasehold residencies in Bodmin with in excess of one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service will provide you better 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 decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Sebastian, started to get near to the 80-year mark with the lease on his purpose- built flat in Bodmin. Having purchased his flat 19 years ago, the unexpired term was of minimal significance. As luck would have it, it dawned on him that he would soon be paying an escalated premium for a lease extension. Sebastian arranged for a lease extension at the eleventh hour last April. Sebastian and the freeholder via the management company ultimately agreed on an amount of £6,000 . If he failed to meet the deadline, the amount would have escalated by at least £1,000.
Ms H Edwards owned a one bedroom apartment in Bodmin in February 2004. We are asked if we could estimate the price would be for a 90 year lease extension. Similar premises in Bodmin with an extended lease were in the region of £174,200. The average ground rent payable was £55 collected annually. The lease finished in 2077. Given that there were 51 years left we approximated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 not including expenses.
Dr Sam James acquired a basement flat in Bodmin in August 1999. We are asked if we could estimate the premium would likely be for a ninety year lease extension. Comparative homes in Bodmin with an extended lease were valued about £285,000. The average ground rent payable was £45 invoiced quarterly. The lease came to a finish on 25 July 2097. Taking into account 71 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 not including legals.