When it comes to domestic leasehold property in Bungay, you are in fact renting it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately greater notably when there are less than eighty years left. Anyone in Bungay with a lease approaching 81 years unexpired should seriously consider extending it as soon as possible. When the lease term has less than eighty years outstanding, under the relevant statute the freeholder can calculate and levy a larger premium, assessed on a technical computation, known as “marriage value” which is payable.
Leasehold properties in Bungay with over one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. 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 |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
Retaining our service will provide you enhanced control over the value of your Bungay leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Caleb was the the leasehold proprietor of a studio flat in Bungay being marketed with a lease of a few days over 59 years outstanding. Caleb informally spoke with his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 per annum. Ordinarily, ground rent would not be payable on a lease extension were Caleb to exercise his statutory right. Caleb procured expert legal guidance and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
Last month we were called by Dr Sarah Dupont , who bought a recently refurbished flat in Bungay in April 2000. We are asked if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Comparative homes in Bungay with a long lease were valued around £275,000. The average amount of ground rent was £45 collected annually. The lease concluded on 10 January 2095. Having 69 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 not including legals.
Mr and Mrs. E Morel purchased a studio flat in Bungay in October 2002. The question was if we could approximate the premium would be to extend the lease by a further 90 years. Identical homes in Bungay with 100 year plus lease were worth £216,000. The average amount of ground rent was £60 billed yearly. The lease elapsed on 16 October 2084. Taking into account 58 years unexpired we estimated the premium to the landlord for the lease extension to be within £28,500 and £33,000 plus expenses.