The rule of thumb is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Bodmin have the right to extend the lease for an additional 90 years under statute. Please think carefully before delaying your Bodmin lease extension. Postponing the costs now simply escalates the premium you will ultimately have to pay for a lease extension.
Leasehold properties in Bodmin with over 100 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 premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify 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. |
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
The conveyancers 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 unsuccessful negotiations with the freeholder of her basement apartment in Bodmin, Zoe commenced the lease extension process as the 80 year deadline was rapidly coming. The legal work was concluded in January 2005. The landlord’s fees were negotiated to about 600 pounds.
Last Autumn we were e-mailed by Mr Jack Evans , who was assigned a lease of a newly refurbished flat in Bodmin in March 2012. We are asked if we could shed any light on how much (roughly) premium would likely be for a 90 year extension to my lease. Comparable homes in Bodmin with 100 year plus lease were worth £206,200. The average amount of ground rent was £55 collected monthly. The lease lapsed in 2082. Considering the 56 years left we calculated the compensation to the landlord for the lease extension to be between £31,400 and £36,200 not including fees.
Mr and Mrs. W Clarke moved into a newly refurbished apartment in Bodmin in April 2011. We are asked if we could shed any light on how much (approximately) price could be to prolong the lease by a further 90 years. Identical properties in Bodmin with a long lease were in the region of £300,000. The mid-range amount of ground rent was £50 billed annually. The lease expired in 2102. Taking into account 76 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 plus fees.