Bodmin leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. It is the case that most Bodmin tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Bodmin you would be well advised to investigate if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
It is generally accepted that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service gives you enhanced control over the value of your Bodmin leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of protracted discussions with the landlord of her basement flat in Bodmin, Jennifer commenced the lease extension process as the eighty year mark was fast approaching. The legal work was finalised in August 2013. The freeholder’s costs were negotiated to about 650 GBP.
In 2013 we were contacted by Mrs C Thompson who, having completed a recently refurbished flat in Bodmin in October 2001. The question was if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Similar homes in Bodmin with a long lease were valued about £166,800. The average amount of ground rent was £55 invoiced quarterly. The lease concluded in 2076. Considering the 50 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £32,300 and £37,400 plus professional charges.
In 2009 we were e-mailed by Mr Evan Baker who, having acquired a basement flat in Bodmin in April 2010. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year extension to my lease. Comparative flats in Bodmin with a long lease were worth £280,000. The mid-range amount of ground rent was £45 invoiced per annum. The lease termination date was in 2096. Considering the 70 years remaining we estimated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 plus professional charges.