There is no doubt about it a leasehold flat or house in Bonvilston is a wasting asset as a result of the diminishing lease term. Where the lease has, beyond one hundred years remaining then this decrease may be fractional however there will become a stage when a lease has less than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should consider extending without delay. The majority of flat owners in Bonvilston will qualify for this right; however a conveyancer can advise whether you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold premises in Bonvilston with in excess of 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
Using our service will provide you increased control over the value of your Bonvilston leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Rory was the the leasehold proprietor of a studio apartment in Bonvilston being sold with a lease of just over 59 years outstanding. Rory on an informal basis spoke with his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 annually. No ground rent would be payable on a lease extension were Rory to invoke his statutory right. Rory obtained expert advice and secured an acceptable resolution informally and sell the flat.
In 2011 we were called by Mr C Michel who, having owned a garden apartment in Bonvilston in August 2006. We are asked if we could approximate the premium would be to prolong the lease by an additional years. Comparative homes in Bonvilston with 100 year plus lease were in the region of £250,000. The average amount of ground rent was £50 invoiced monthly. The lease elapsed on 19 August 2095. Given that there were 69 years unexpired we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including costs.
Dr G Mitchell completed a garden apartment in Bonvilston in August 1996. We are asked if we could shed any light on how much (roughly) premium would be to extend the lease by 90 years. Comparative homes in Bonvilston with 100 year plus lease were valued around £285,000. The mid-range ground rent payable was £55 invoiced per annum. The lease concluded in 2106. Taking into account 80 years left we estimated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of legals.