The closer a domestic lease in Bonvilston gets to zero years unexpired, the the greater the reduction in the value of the property. If the lease has, beyond 100 years to run then this decrease may be negligible that being said there will become a point in time when a lease has fewer than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should extend the lease sooner rather than later. Many flat owners in Bonvilston will meet the qualifying criteria; nevertheless a conveyancer will be able to confirm whether you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Bonvilston,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Bonvilston valuers.
Last October David, came critically close to the eighty-year mark with the lease on his leasehold flat in Bonvilston. Having purchased his flat two decades ago, the lease term was of little relevance. Thankfully, he recognised he needed to take action soon on Extending the lease. David extended the lease just under the wire last March. David and the landlord who owned the flat above in the end settled on a premium of £6,000 . If he failed to meet the deadline, the price would have gone up by a minimum £950.
In 2010 we were approached by Mr and Mrs. L Turner who, having took over the lease of a studio apartment in Bonvilston in June 1995. We are asked if we could approximate the price would be for a ninety year lease extension. Similar residencies in Bonvilston with 100 year plus lease were in the region of £225,400. The mid-range ground rent payable was £45 billed per annum. The lease elapsed on 6 April 2090. Having 64 years unexpired we calculated the compensation to the landlord for the lease extension to be between £16,200 and £18,600 plus fees.
Last Winter we were called by Dr M Jackson , who bought a newly refurbished flat in Bonvilston in April 2002. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparative residencies in Bonvilston with an extended lease were worth £270,000. The mid-range amount of ground rent was £55 collected every twelve months. The lease ended in 2101. Taking into account 75 years outstanding we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of costs.