Unfortunately that a Bodmin residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Bodmin property prices.Where your lease has approximately ninety years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under 80 years - otherwise a higher premium will be payable. The majority of flat owners in Bodmin will be able to extend under the legislation; however a conveyancer will be able to confirm if you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the process.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barnsley Building Society | |
| Chelsea Building Society | |
| Virgin | |
| Yorkshire Building Society |
The lawyers that we work with undertake Bodmin lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Last October Jayden, started to get close to the 80-year threshold with the lease on his two bedroom flat in Bodmin. In buying his home 19 years previously, the length of the lease was of little importance. As luck would have it, it dawned on him that he would imminently be paying an inflated amount for Extending the lease. Jayden extended the lease at the eleventh hour last May. Jayden and the landlord who owned the flat above subsequently settled on a premium of £6,000 . If he had missed the deadline, the amount would have become more costly by at least £1,125.
In 2014 we were e-mailed by Ms B Phillips who, having owned a first floor flat in Bodmin in February 1997. The dilemma was if we could estimate the price would be for a 90 year lease extension. Comparable homes in Bodmin with an extended lease were valued around £205,000. The mid-range ground rent payable was £50 invoiced annually. The lease elapsed on 19 April 2105. Given that there were 79 years outstanding we estimated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including expenses.
In 2012 we were approached by Mr and Mrs. F Hill who, having took over the lease of a one bedroom flat in Bodmin in February 2000. The dilemma was if we could estimate the premium would be to extend the lease by ninety years. Comparative premises in Bodmin with a long lease were in the region of £275,000. The average amount of ground rent was £65 collected annually. The lease came to a finish on 25 August 2094. Considering the 68 years outstanding we calculated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 plus professional charges.