The re-sale value of a leasehold property in Bonvilston is impacted by how long the lease has left to run. If it is near to or fewer than 80 years you should anticipate difficulties on re-sale, so it is recommended to arrange for a lease extension ahead of purchasing. It is preferable to start the lease extension process when the lease still has 82 years unexpired so that a lease extension can be finalised ahead of the 80 year mark. Leasehold Reform legislation enables Bonvilston qualifying lessees to an additional term of 90 years in addition to the remaining term, at a nominal rent (zero ground rent). The reason of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to a freehold for many years ahead.
| 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. |
| Coventry Building Society | 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with procure Bonvilston 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 conveyancer we work with provide it.
Last Christmas Aaron, started to get near to the eighty-year threshold with the lease on his two bedroom flat in Bonvilston. In buying his property 18 years previously, the lease term was of little interest. As luck would have it, he recognised he needed to take steps soon on Extending the lease. Aaron arranged for a lease extension just ahead of time last April. Aaron and the landlord who owned the flat above eventually settled on sum of £5,000 . If the lease had descended below eighty years, the sum would have escalated by a minimum £875.
In 2011 we were approached by Dr Harrison Brooks who, having bought a ground floor apartment in Bonvilston in August 2009. We are asked if we could approximate the premium could be for a 90 year extension to my lease. Comparable residencies in Bonvilston with an extended lease were worth £255,000. The mid-range amount of ground rent was £50 invoiced annually. The lease lapsed in 2096. Given that there were 71 years as a residual term we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including costs.
Last Winter we were called by Ms Natasha Evans , who completed a newly refurbished flat in Bonvilston in April 2009. The question was if we could estimate the premium could be to extend the lease by an additional years. Comparative flats in Bonvilston with 100 year plus lease were valued about £254,200. The mid-range ground rent payable was £60 invoiced quarterly. The lease expired in 2076. Having 51 years remaining we calculated the premium to the landlord for the lease extension to be between £43,700 and £50,600 exclusive of professional charges.