Bubwith leases on residential deteriorating in value. if your lease has about 90 years left, 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 Bubwith will usually be legally entitled to a lease extension; however a solicitor should be able check your eligibility. In some situations you may not qualify. There are also strict deadlines and formalities to comply with once the process has commenced so it’s prudent to be guided by a conveyancer during the process.
It is generally considered that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
Irrespective of whether you are a tenant or a freeholder in Bubwith,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Bubwith valuers.
Trailing unsuccessful discussions with the freeholder of her basement apartment in Bubwith, Daisy commenced the lease extension process just as her lease was coming close to the critical eighty-year mark. The legal work was concluded in February 2007. The freeholder’s charges were kept to an absolute minimum.
In 2012 we were phoned by Mr and Mrs. B Davies who, having moved into a recently refurbished apartment in Bubwith in July 2001. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparative premises in Bubwith with a long lease were valued about £216,000. The mid-range amount of ground rent was £60 collected per annum. The lease elapsed in 2083. Considering the 58 years unexpired we approximated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 not including professional charges.
Last Summer we were called by Mrs A Thomas , who owned a purpose-built apartment in Bubwith in June 2007. We are asked if we could approximate the premium would likely be for a 90 year lease extension. Similar properties in Bubwith with 100 year plus lease were worth £200,000. The average amount of ground rent was £50 invoiced every twelve months. The lease finished in 2103. Considering the 78 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 not including fees.