Bures leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Most owners of residential leasehold property in Bures enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Bures you must investigate if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
Leasehold residencies in Bures with more than 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Bures,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 experience and the close ties they enjoy with Bures valuers.
Trailing unsuccessful negotiations with the freeholder of her one bedroom flat in Bures, Alice commenced the lease extension process just as the lease was approaching the critical eighty-year deadline. The legal work completed in June 2014. The landlord’s charges were negotiated to under 550 pounds.
In 2010 we were contacted by Mrs M Green who, having owned a ground floor flat in Bures in April 2011. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by a further 90 years. Identical homes in Bures with 100 year plus lease were worth £255,000. The average ground rent payable was £50 invoiced monthly. The lease concluded in 2096. Given that there were 70 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of costs.
In 2012 we were phoned by Mr U Evans who, having was assigned a lease of a recently refurbished apartment in Bures in April 2002. We are asked if we could estimate the price would likely be to extend the lease by 90 years. Comparable residencies in Bures with a long lease were worth £246,800. The average ground rent payable was £60 collected quarterly. The lease lapsed in 2076. Having 50 years left we approximated the compensation to the landlord for the lease extension to be between £44,700 and £51,600 exclusive of costs.