There is no doubt about it a leasehold flat or house in Bodmin is a wasting asset as a result of the shortening lease. If the lease has, over 99 years to run then this decrease may be negligible however there will become a stage when a lease has less than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary reason why you should extend the lease sooner than later. Many flat owners in Bodmin will qualify for this right; that being said a conveyancer should be able to advise whether you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold premises in Bodmin with more than one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Using our service gives you increased 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 lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Dylan was the the leasehold proprietor of a studio apartment in Bodmin being sold with a lease of a few days over 59 years outstanding. Dylan informally contacted his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £100 yearly. No ground rent would be due on a lease extension were Dylan to invoke his statutory right. Dylan procured expert advice and was able to make a more informed decision and deal with the matter and readily saleable.
Last month we were approach by Mr U Khan , who purchased a one bedroom apartment in Bodmin in May 2006. The question was if we could estimate the premium would be to prolong the lease by a further 90 years. Comparable residencies in Bodmin with an extended lease were worth £275,000. The average ground rent payable was £45 billed quarterly. The lease terminated on 21 March 2094. Given that there were 69 years left we approximated the premium to the landlord for the lease extension to be within £12,400 and £14,200 plus legals.
Ms Alisha Clark acquired a first floor apartment in Bodmin in March 2012. The dilemma was if we could shed any light on how much (roughly) price would likely be for a 90 year lease extension. Comparative flats in Bodmin with a long lease were worth £216,000. The average amount of ground rent was £60 invoiced every twelve months. The lease elapsed in 2083. Taking into account 58 years outstanding we calculated the premium to the landlord for the lease extension to be between £28,500 and £33,000 exclusive of professional charges.