When it comes to long leasehold premises in Bubwith, you effectively rent it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are fewer than 80 years remaining. Anyone in Bubwith with a lease drawing near to 81 years left should seriously think of extending it without delay. When a lease has under 80 years left, under the current Act the freeholder can calculate and charge a greater amount, based on a technical calculation, strangely termed as “marriage value” which is payable.
It is generally accepted that a residential leasehold with over 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Bubwith can be a difficult process. We recommend you secure professional help from a conveyancer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Bubwith lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Oscar, started to get near to the 80-year mark with the lease on his two bedroom flat in Bubwith. In buying his home twenty years ago, the unexpired term was of no significance. As luck would have it, he noticed he would imminently be paying way over the odds for a lease extension. Oscar arranged for a lease extension just under the wire in January. Oscar and the landlord eventually agreed on the final figure of £5,000 . If he not met the deadline, the amount would have become more exhorbitant by a minimum £950.
Last Christmas we were e-mailed by Mr Blake Flores , who acquired a first floor flat in Bubwith in April 2003. The dilemma was if we could shed any light on how much (roughly) premium would likely be to extend the lease by ninety years. Similar flats in Bubwith with 100 year plus lease were valued about £295,000. The mid-range amount of ground rent was £45 collected quarterly. The lease end date was on 28 September 2101. Considering the 75 years remaining we estimated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of legals.
Dr U Martin purchased a first floor apartment in Bubwith in September 1999. The dilemma was if we could estimate the price would be to extend the lease by a further 90 years. Similar premises in Bubwith with a long lease were worth £250,400. The average amount of ground rent was £65 invoiced annually. The lease elapsed in 2090. Given that there were 64 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £19,000 and £22,000 plus fees.