The market value of a leasehold property in Bulkington depends on how many years the lease has left to run. If it is near to or fewer than 80 years you should foresee problems on re-sale, so it is recommended to arrange for the lease to be extended prior to purchasing. It is ideal to start the process of extending the lease is when a lease still has 82 years unexpired so that all matters can be finalised in advance of the 80 year cut off point. Statute enables Bulkington qualifying lessees to a 90 year extension added to their unexpired lease term (ie if your lease has fifty years left the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold properties in Bulkington with over one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Bulkington can be a difficult process. We recommend you procure professional help from a conveyancer and valuer 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 a wealth of experience dealing with Bulkington lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Joshua, started to get close to the 80-year mark with the lease on his one bedroom flat in Bulkington. Having purchased his flat twenty years ago, the unexpired term was of little relevance. As luck would have it, he recognised he would soon be paying an escalated premium for a lease extension. Joshua was able to extend his lease at the eleventh hour last May. Joshua and the landlord who owned the flat above subsequently settled on the final figure of £5,500 . If he failed to meet the deadline, the price would have gone up by at least £1,125.
Last year we were contacted by Mr and Mrs. U Reed , who purchased a basement flat in Bulkington in November 2011. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year extension to my lease. Similar properties in Bulkington with a long lease were in the region of £191,400. The average ground rent payable was £55 billed quarterly. The lease ran out on 26 November 2080. Taking into account 54 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £34,200 and £39,600 plus costs.
Last Winter we were phoned by Mr and Mrs. F Cook , who purchased a newly refurbished flat in Bulkington in September 1996. The question was if we could approximate the compensation to the landlord would be to prolong the lease by ninety years. Comparative flats in Bulkington with an extended lease were worth £295,000. The mid-range amount of ground rent was £45 invoiced annually. The lease terminated on 1 October 2100. Considering the 74 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of fees.