There is no doubt about it a leasehold flat or house in Bungay is a wasting asset as a result of the diminishing lease term. If the lease has, beyond one hundred years remaining then this decrease may be of little impact nevertheless there will become a point in time when a lease has less than eighty years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should consider extending sooner than later. Many flat owners in Bungay will qualify for this right; that being said a lawyer can confirm if you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold properties in Bungay with in excess of one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Bungay,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 Bungay valuers.
In recent months Archie, started to get close to the eighty-year threshold with the lease on his ground floor apartment in Bungay. In buying his home two decades ago, the length of the lease was of little relevance. Luckily, he noticed he would soon be paying way over the odds for Extending the lease. Archie extended the lease just in the nick of time last January. Archie and the landlord who owned the flat above in the end agreed on an amount of £5,000 . If he failed to meet the deadline, the amount would have escalated by at least £1,150.
Last Winter we were approach by Mr and Mrs. I Ricardo , who completed a newly refurbished apartment in Bungay in May 2002. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Comparative properties in Bungay with a long lease were worth £267,600. The mid-range ground rent payable was £65 invoiced per annum. The lease ran out in 2092. Having 67 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £14,300 and £16,400 not including costs.
Last Winter we were phoned by Dr Ryan Clarke , who completed a one bedroom flat in Bungay in August 2007. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by ninety years. Similar flats in Bungay with 100 year plus lease were worth £201,200. The mid-range amount of ground rent was £55 invoiced monthly. The lease terminated on 1 September 2081. Taking into account 56 years outstanding we approximated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 not including professional charges.