Bury St Edmunds leases on residential properties are gradually losing value. Where your lease has in the region of 90 years remaining, you should start considering the need for a lease extension. 80 years is a significant number: when the unexpired term of a lease dips below this level then you begin incurring an additional element called marriage value. Flat owners in Bury St Edmunds will usually qualify for a lease extension; however a solicitor will confirm if you qualify. In some situations you may not qualify. There are also strict timetables and procedures to follow once the process is triggered so it’s best to be guided by a lawyer during the process.
It is generally accepted that a property with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the residence will be equivalent in value to a freehold for decades to come.
| 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. |
| Coventry Building Society | 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Bury St Edmunds can be a difficult process. We recommend you procure professional help from a conveyancer and valuer 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 in-depth market knowledge procuring Bury St Edmunds lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Kyle, came critically near to the eighty-year threshold with the lease on his one bedroom flat in Bury St Edmunds. Having purchased his property two decades ago, the length of the lease was of little significance. Thankfully, he became aware that he would imminently be paying an escalated premium for Extending the lease. Kyle was able to extend his lease just in the nick of time last August. Kyle and the freeholder ultimately agreed on an amount of £5,500 . If he had missed the deadline, the price would have escalated by a minimum £1,100.
In 2009 we were called by Mr and Mrs. Y Lambert who, having owned a one bedroom apartment in Bury St Edmunds in October 2009. We are asked if we could estimate the price would likely be for a ninety year lease extension. Identical properties in Bury St Edmunds with 100 year plus lease were worth £166,400. The mid-range amount of ground rent was £60 collected every twelve months. The lease terminated on 10 June 2080. Considering the 54 years unexpired we approximated the premium to the freeholder to extend the lease to be between £32,300 and £37,400 plus legals.
Last August we were e-mailed by Mr W Gray , who owned a ground floor flat in Bury St Edmunds in September 1999. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by 90 years. Similar homes in Bury St Edmunds with an extended lease were valued about £232,800. The mid-range ground rent payable was £45 billed quarterly. The lease lapsed on 16 April 2091. Taking into account 65 years remaining we estimated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of professional charges.