Bradley Stoke leases on residential properties are gradually losing value. if your lease has about 90 years remaining, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease dips below this level then you start paying an additional element called marriage value. Leasehold owners in Bradley Stoke will usually qualify for a lease extension; however a solicitor will confirm your eligibility. In certain circumstances you may not qualify. There are prescribed deadlines and formalities to comply with once the process has commenced so it’s sensible to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Bradley Stoke with over one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the freehold 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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. |
The conveyancers that we work with undertake Bradley Stoke 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.
In 2014 Aarav, started to get near to the 80-year mark with the lease on his basement flat in Bradley Stoke. In buying his home two decades ago, the unexpired term was of little concern. by good luck, he noticed he would imminently be paying an escalated premium for Extending the lease. Aarav arranged for a lease extension at the eleventh hour last April. Aarav and the freeholder via the management company in the end agreed on the final figure of £6,000 . If he failed to meet the deadline, the sum would have escalated by at least £850.
Dr Rachael Bailey purchased a basement flat in Bradley Stoke in September 2002. The question was if we could estimate the price would be to prolong the lease by 90 years. Comparative residencies in Bradley Stoke with an extended lease were valued around £191,400. The mid-range amount of ground rent was £55 billed quarterly. The lease expiry date was on 27 October 2080. Having 54 years left we approximated the compensation to the freeholder to extend the lease to be within £34,200 and £39,600 plus fees.
Last Autumn we were e-mailed by Mrs Yasmin Fournier , who bought a ground floor flat in Bradley Stoke in June 1998. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Similar homes in Bradley Stoke with 100 year plus lease were valued about £295,000. The average ground rent payable was £45 billed quarterly. The lease end date was in 2100. Having 74 years remaining we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of fees.