The re-sale value of a leasehold property in Bodmin depends on how long the lease has left to run. If it is near to or less than 80 years you should anticipate difficulties on re-sale, so it is advisable to arrange for a lease extension prior to purchasing. It is preferable to start the process of extending the lease is when the lease still has 82 years remaining so that all matters can be finalised prior to the eighty year cut off point. Leasehold Reform legislation enables Bodmin qualifying lessees to acquire a new lease which will be for the current unexpired lease term plus a further term of 90 years. The intention of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises 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. |
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a landlord in Bodmin,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Bodmin valuers.
Trailing unsuccessful discussions with the landlord of her studio flat in Bodmin, Ellie commenced the lease extension process just as the lease was approaching the crucial eighty-year deadline. The legal work was finalised in January 2008. The landlord’s fees were negotiated to below 650 GBP.
Last month we were phoned by Dr E Phillips , who took over the lease of a one bedroom apartment in Bodmin in February 2001. The dilemma was if we could estimate the premium could be for a ninety year extension to my lease. Comparable properties in Bodmin with 100 year plus lease were worth £181,600. The average ground rent payable was £55 billed monthly. The lease expired on 5 June 2078. Given that there were 52 years as a residual term we calculated the premium to the landlord to extend the lease to be between £30,400 and £35,200 exclusive of expenses.
In 2013 we were e-mailed by Mrs Hannah Clark who, having completed a garden flat in Bodmin in January 2005. The question was if we could approximate the price could be for a 90 year extension to my lease. Identical homes in Bodmin with a long lease were in the region of £285,000. The mid-range amount of ground rent was £45 billed annually. The lease expired in 2098. Having 72 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of fees.