Owning a flat usually means owning a lease of the property, which has a set term of years. The lease will usually be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Bodmin. Inevitably, the period of lease remaining reduces over time. This may slip by relatively unnoticed when the residence has to be disposed of or refinanced. The shorter the lease the lower the value of the property and the more expensive it will be to obtain a lease extension. Qualifying leaseholders in Bodmin have the right to extend the lease for a further 90 years under legislation. Do give careful consideration before delaying your Bodmin lease extension. Holding off that expense now simply increases the price you will ultimately incur for a lease extension
Leasehold residencies 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 situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Using our service gives you enhanced control over the value of your Bodmin leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of eight months of unsuccessful correspondence with the landlord of her one bedroom apartment in Bodmin, Niamh started the lease extension process as the 80 year deadline was swiftly advancing. The lease extension was finalised in March 2015. The freeholder’s fees were negotiated to about 450 pounds.
In 2012 we were phoned by Mrs H Williams who, having acquired a first floor apartment in Bodmin in August 2011. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year lease extension. Comparable properties in Bodmin with a long lease were valued around £200,000. The average ground rent payable was £50 invoiced every twelve months. The lease finished on 12 April 2104. Having 78 years left we calculated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 plus professional charges.
In 2012 we were approached by Mr L André who, having moved into a basement apartment in Bodmin in March 2011. The question was if we could shed any light on how much (approximately) premium could be for a 90 year lease extension. Comparable residencies in Bodmin with an extended lease were valued around £267,600. The average ground rent payable was £65 invoiced quarterly. The lease expired in 2093. Given that there were 67 years remaining we estimated the premium to the freeholder to extend the lease to be between £14,300 and £16,400 plus fees.