Bredbury leases on residential properties are gradually losing value. if your lease has in the region of 90 years unexpired, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease falls below this level then you begin paying an additional element called marriage value. Leasehold owners in Bredbury will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to confirm your eligibility. In certain situations you may not be entitled. There are prescribed timetables and steps to follow once the process is initiated so it’s wise to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a property with in excess of 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 |
|---|---|
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Retaining our service will provide you increased control over the value of your Bredbury leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Jude owned a conversion flat in Bredbury on the market with a lease of a little over 72 years unexpired. Jude informally approached his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 annually. No ground rent would be due on a lease extension were Jude to invoke his statutory right. Jude obtained expert legal guidance and was able to make an informed decision and deal with the matter and ending up with a market value flat.
In 2012 we were e-mailed by Mrs E Bailey who, having bought a garden apartment in Bredbury in June 2006. The dilemma was if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Identical residencies in Bredbury with an extended lease were valued around £300,000. The average ground rent payable was £50 invoiced every twelve months. The lease end date was in 2101. Considering the 75 years outstanding we estimated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 not including legals.
In 2010 we were phoned by Mr and Mrs. R Baker who, having completed a garden apartment in Bredbury in April 2010. The dilemma was if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Similar properties in Bredbury with 100 year plus lease were valued around £250,400. The mid-range ground rent payable was £65 invoiced yearly. The lease elapsed on 16 October 2090. Considering the 64 years unexpired we estimated the premium to the freeholder for the lease extension to be within £19,000 and £22,000 exclusive of costs.