Bodmin leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. It is the case that most Bodmin tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Bodmin you must check if your lease has between 70 and 90 years left. There are good reasons why a Bodmin leaseholder with a lease having around eighty years remaining should take action to ensure that a lease extension is put in place without delay
Leasehold residencies in Bodmin with more than one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Lease extensions in Bodmin can be a difficult process. We recommend you get guidance from a conveyancing solicitor and surveyor 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.
Following unsuccessful negotiations with the landlord of her first floor flat in Bodmin, Emma commenced the lease extension process as the 80 year mark was fast nearing. The legal work completed in November 2014. The freeholder’s charges were negotiated to less than 550 GBP.
Last month we were approach by Ms Isobel Cooper , who was assigned a lease of a recently refurbished apartment in Bodmin in July 2005. The dilemma was if we could estimate the price would be to prolong the lease by a further 90 years. Similar properties in Bodmin with 100 year plus lease were valued about £210,000. The mid-range ground rent payable was £50 billed yearly. The lease ended in 2105. Given that there were 80 years left we estimated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 not including fees.
Dr I Rivera bought a one bedroom apartment in Bodmin in February 2004. The dilemma was if we could shed any light on how much (approximately) price could be for a 90 year extension to my lease. Comparable premises in Bodmin with an extended lease were valued about £275,000. The mid-range amount of ground rent was £45 collected annually. The lease ended on 8 June 2094. Taking into account 69 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 plus fees.