Owning a apartment usually means owning a lease of the property, which has a set term of years. This lease will usually be granted for a set period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Bodmin. Clearly, the period of lease remaining shortens over time. This is often ignored and only raises itself as an issue when the residence has to be disposed of or re-mortgaged. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease. Qualifying long lease owners in Bodmin have the right to extend the lease for an additional 90 years in accordance with legislation. Do give due consideration before putting off your Bodmin lease extension. Holding off the cost now likely increases the price you will ultimately have to pay to extend your lease
Leasehold residencies in Bodmin with in excess of one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date 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. |
| 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. |
Lease extensions in Bodmin can be a difficult process. We recommend you obtain professional help from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Bodmin lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After lengthy discussions with the landlord of her studio flat in Bodmin, Elizabeth initiated the lease extension process as the eighty year threshold was rapidly nearing. The transaction was finalised in June 2006. The landlord’s fees were kept to an absolute minimum.
Last Summer we were phoned by Dr L Johnson , who completed a newly refurbished apartment in Bodmin in June 2009. The question was if we could approximate the premium could be for a 90 year lease extension. Identical properties in Bodmin with a long lease were valued about £225,800. The mid-range ground rent payable was £60 invoiced every twelve months. The lease expired on 2 November 2085. Given that there were 60 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £23,800 and £27,400 not including fees.
Last Spring we were contacted by Dr V Roberts , who was assigned a lease of a basement apartment in Bodmin in June 1995. The dilemma was if we could estimate the compensation to the landlord would likely be to prolong the lease by ninety years. Comparative homes in Bodmin with an extended lease were valued about £210,000. The average ground rent payable was £50 billed per annum. The lease finished in 2105. Given that there were 80 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 plus professional charges.