The only way is down when it comes to Bury St Edmunds lease terms. Bury St Edmunds properties that have a lease term lower than eighty years will de-escalate in value even faster, and the cost to extend your lease will go up.
Leasehold residencies in Bury St Edmunds with over one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit 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. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service will provide you enhanced control over the value of your Bury St Edmunds leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Milo owned a conversion apartment in Bury St Edmunds being sold with a lease of a little over 59 years left. Milo informally contacted his landlord a well known London-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 annually. Ordinarily, ground rent would not be due on a lease extension were Milo to invoke his statutory right. Milo procured expert legal guidance and secured satisfactory resolution without going to tribunal and ending up with a market value flat.
In 2011 we were e-mailed by Dr Paige Thompson who, having completed a ground floor flat in Bury St Edmunds in October 1995. The question was if we could approximate the price would be to extend the lease by an additional years. Comparable premises in Bury St Edmunds with an extended lease were worth £265,000. The average amount of ground rent was £50 collected yearly. The lease came to a finish on 14 June 2099. Having 74 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus expenses.
Mr and Mrs. H Jones was assigned a lease of a recently refurbished flat in Bury St Edmunds in April 2004. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year extension to my lease. Similar premises in Bury St Edmunds with 100 year plus lease were in the region of £264,000. The average ground rent payable was £60 collected quarterly. The lease concluded on 17 February 2078. Taking into account 53 years left we approximated the compensation to the freeholder to extend the lease to be between £37,100 and £42,800 exclusive of professional charges.