Unfortunately that a Bredon residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Bredon property prices.Once your lease gets to 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls lower than 80 years - otherwise a higher premium will be due. The majority of flat owners in Bredon will be able to extend under the legislation; however a conveyancer should be able to confirm if you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the formalities.
It is conventional wisdom that a property with more than 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Bredon,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Bredon valuers.
Off the back of lengthy correspondence with the landlord of her ground floor flat in Bredon, Harriet commenced the lease extension process just as her lease was coming close to the critical 80-year deadline. The transaction completed in April 2007. The freeholder’s fees were restricted to approximately four hundred GBP.
Mr and Mrs. B Walker was assigned a lease of a ground floor apartment in Bredon in February 2003. The question was if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Similar residencies in Bredon with an extended lease were in the region of £290,000. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease concluded in 2097. Having 72 years unexpired we estimated the premium to the freeholder to extend the lease to be between £11,400 and £13,200 plus legals.
Last Summer we were contacted by Mrs Paige Rogers , who completed a recently refurbished apartment in Bredon in March 2004. The question was if we could shed any light on how much (roughly) price would be for a ninety year lease extension. Similar premises in Bredon with a long lease were valued around £233,200. The average ground rent payable was £60 billed annually. The lease terminated on 1 May 2086. Given that there were 61 years as a residual term we approximated the premium to the landlord to extend the lease to be within £22,800 and £26,400 not including professional charges.