The market value of Bonvilston leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate materialy once the unexpired lease term is less than 80 years
Leasehold premises in Bonvilston with in excess of 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant 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. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 Bonvilston can be a difficult process. We recommend you procure guidance from a lawyer 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 a wealth of experience procuring Bonvilston lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 6 months of protracted negotiations with the freeholder of her first floor flat in Bonvilston, Phoebe commenced the lease extension process just as the lease was approaching the critical 80-year threshold. The legal work was finalised in June 2009. The landlord’s fees were kept to an absolute minimum.
Mr and Mrs. M Jones purchased a purpose-built flat in Bonvilston in July 2009. We are asked if we could approximate the price could be for a ninety year extension to my lease. Comparative homes in Bonvilston with an extended lease were in the region of £261,600. The mid-range amount of ground rent was £60 billed yearly. The lease terminated in 2077. Taking into account 52 years left we approximated the compensation to the landlord for the lease extension to be within £39,000 and £45,000 exclusive of legals.
In 2013 we were contacted by Mr and Mrs. I Bennett who, having owned a garden apartment in Bonvilston in August 2007. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by 90 years. Identical properties in Bonvilston with an extended lease were valued around £218,000. The average amount of ground rent was £45 collected yearly. The lease concluded on 9 September 2088. Given that there were 63 years unexpired we approximated the premium to the landlord for the lease extension to be between £17,100 and £19,800 plus expenses.