Unfortunately that a Bulkington residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Bulkington property prices.Once your lease gets to 85ish years, you need to start thinking about a lease extension. If the number of years remaining dips below 80 years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most leasehold owners in Bulkington will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you are eligibility. In some cases you may not qualify. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your lawyer throughout the process.
Leasehold properties in Bulkington with in excess of one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Bulkington,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 experience and the close ties they enjoy with Bulkington valuers.
After protracted discussions with the freeholder of her purpose-built flat in Bulkington, Katherine commenced the lease extension process as the 80 year deadline was quickly advancing. The transaction was concluded in August 2005. The freeholder’s costs were negotiated to under 450 GBP.
Mr and Mrs. F Scott owned a studio apartment in Bulkington in September 1996. The dilemma was if we could approximate the premium would be to prolong the lease by an additional years. Comparative premises in Bulkington with a long lease were in the region of £275,000. The average ground rent payable was £65 billed yearly. The lease ran out on 10 June 2093. Having 68 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 not including expenses.
In 2013 we were called by Mr David Cox who, having completed a purpose-built apartment in Bulkington in April 2004. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Identical properties in Bulkington with 100 year plus lease were valued around £208,600. The mid-range ground rent payable was £60 invoiced quarterly. The lease end date was in 2082. Given that there were 57 years remaining we calculated the premium to the freeholder to extend the lease to be between £30,400 and £35,200 plus expenses.