It’s an underpublicised truth that a Bulwell residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Bulwell property market.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. If lease term slips under 80 years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most flat owners in Bulwell will be able to extend under the legislation; however a conveyancer will be able to confirm whether you are eligibility. In some situations you may not qualify. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your lawyer from beginning to end of the process.
Leasehold properties in Bulwell with in excess of one hundred years left on the lease are often 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 upside in buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a landlord in Bulwell,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Bulwell valuers.
Dylan was the the leasehold owner of a high value flat in Bulwell being marketed with a lease of a few days over 72 years outstanding. Dylan informally approached his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Dylan to exercise his statutory right. Dylan obtained expert legal guidance and secured an acceptable deal without resorting to tribunal and readily saleable.
In 2009 we were e-mailed by Mr and Mrs. K Rodríguez who, having completed a garden flat in Bulwell in November 1998. We are asked if we could estimate the premium could be to extend the lease by an additional years. Identical homes in Bulwell with an extended lease were in the region of £223,400. The average ground rent payable was £60 billed annually. The lease ran out in 2085. Considering the 59 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £27,600 and £31,800 not including fees.
Ms T Norbert took over the lease of a purpose-built flat in Bulwell in November 2002. The dilemma was if we could approximate the price could be for a 90 year extension to my lease. Identical residencies in Bulwell with a long lease were valued around £205,000. The mid-range ground rent payable was £50 collected yearly. The lease ended in 2105. Considering the 79 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of fees.