The market value of a leasehold property in Bungay is impacted by how long the lease has remaining. If it is close to or fewer than eighty years you should foresee difficulties on re-sale, so it is advisable to arrange for a lease extension before buying. It is preferable to start the process of extending the lease is when the lease still has 82 years remaining so that all matters can be concluded ahead of the eighty year mark. Leasehold Reform legislation entitles Bungay qualifying lessees to obtain a new lease which will be for the balance of the existing lease plus an additional term of ninety years. The purpose of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Bungay with over 100 years remaining 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 home. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Lease extensions in Bungay can be a difficult process. We recommend you get professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.
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 Bungay lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Nathan was the the leasehold owner of a studio flat in Bungay on the market with a lease of just over fifty eight years remaining. Nathan informally spoke with his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 per annum. Ordinarily, ground rent would not be due on a lease extension were Nathan to invoke his statutory right. Nathan procured expert legal guidance and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
Mr and Mrs. B Ward moved into a garden flat in Bungay in April 1999. The question was if we could estimate the premium could be for a ninety year extension to my lease. Comparable homes in Bungay with a long lease were in the region of £295,000. The average amount of ground rent was £45 invoiced annually. The lease expiry date was in 2100. Given that there were 74 years left we estimated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 not including professional charges.
In 2014 we were called by Mr James Patel who, having took over the lease of a ground floor flat in Bungay in March 1996. We are asked if we could shed any light on how much (roughly) premium would be to extend the lease by 90 years. Identical properties in Bungay with an extended lease were worth £243,000. The average amount of ground rent was £65 billed every twelve months. The lease lapsed on 6 July 2089. Having 63 years left we estimated the compensation to the freeholder to extend the lease to be between £20,000 and £23,000 plus professional charges.