Bubwith leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Most owners of residential leasehold property in Bubwith enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Bubwith you must see if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension sharply increases as part of the premium you pay is what is known as a marriage value
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the residence will be equivalent in value to a freehold for many years in the future.
| 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. |
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with procure Bubwith 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.
George owned a studio flat in Bubwith being marketed with a lease of a little over sixty years remaining. George informally contacted his landlord a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were George to invoke his statutory right. George obtained expert legal guidance and secured satisfactory resolution without going to tribunal and ending up with a market value flat.
Last month we were phoned by Dr U Lefebvre , who acquired a recently refurbished apartment in Bubwith in November 1997. The question was if we could approximate the premium would likely be to extend the lease by an additional years. Identical residencies in Bubwith with an extended lease were valued about £243,000. The average amount of ground rent was £65 invoiced yearly. The lease lapsed in 2088. Considering the 63 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £20,000 and £23,000 exclusive of expenses.
In 2011 we were phoned by Dr S Rodríguez who, having took over the lease of a one bedroom flat in Bubwith in April 2001. The dilemma was if we could approximate the price could be for a 90 year extension to my lease. Comparative properties in Bubwith with an extended lease were valued around £181,600. The average amount of ground rent was £55 collected quarterly. The lease ended on 27 November 2077. Considering the 52 years left we estimated the premium to the landlord to extend the lease to be within £30,400 and £35,200 plus legals.