With a long leasehold premises in Bredon, you are actually buying an entitlement to reside in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially when there are less than eighty years remaining. Anyone in Bredon with a lease approaching 81 years left should seriously think of extending it sooner than later. When a lease has below eighty years remaining, under the relevant Act the landlord can calculate and levy a greater premium, assessed on a technical calculation, known as “marriage value” which is payable.
Leasehold premises in Bredon with more than 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Yorkshire 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. |
The conveyancers that we work with handle Bredon 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 conveyancing solicitor we work with provide it.
Off the back of protracted negotiations with the freeholder of her basement apartment in Bredon, Kate commenced the lease extension process just as her lease was coming close to the critical 80-year threshold. The transaction was finalised in November 2007. The freeholder’s costs were kept to an absolute minimum.
Dr H Thomas bought a first floor apartment in Bredon in September 2008. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Similar properties in Bredon with 100 year plus lease were in the region of £230,800. The mid-range amount of ground rent was £60 collected every twelve months. The lease came to a finish on 16 July 2086. Considering the 60 years remaining we estimated the compensation to the landlord for the lease extension to be between £24,700 and £28,600 exclusive of expenses.
In 2013 we were phoned by Mr and Mrs. S Mason who, having was assigned a lease of a studio flat in Bredon in September 2009. We are asked if we could shed any light on how much (approximately) premium could be for a ninety year lease extension. Comparable homes in Bredon with a long lease were valued about £210,000. The mid-range ground rent payable was £50 billed monthly. The lease ended on 1 July 2106. Considering the 80 years unexpired we approximated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 plus expenses.