With a residential leasehold property in Bury, you are actually buying a right to reside in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may 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 increases markedly notably when there are fewer than 80 years remaining. Residents in Bury with a lease drawing near to 81 years remaining should seriously think of extending it without delay. When the lease term has less than 80 years outstanding, under the current legislation the landlord is entitled to calculate and charge a greater amount, assessed on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold premises in Bury with over 100 years outstanding 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 reversionary interest unless savings on ground rent and service charges merit 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Bury,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Bury valuers.
Following lengthy correspondence with the freeholder of her studio flat in Bury, Lily initiated the lease extension process just as her lease was nearing the crucial 80-year threshold. The legal work was finalised in April 2006. The landlord’s fees were restricted to below 650 pounds.
In 2014 we were contacted by Dr Muhammad Martin who, having took over the lease of a newly refurbished apartment in Bury in November 2009. The dilemma was if we could approximate the price would be for a 90 year lease extension. Identical flats in Bury with a long lease were valued around £200,000. The mid-range ground rent payable was £50 billed every twelve months. The lease ended on 12 June 2103. Given that there were 77 years left we estimated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of fees.
In 2009 we were e-mailed by Mr C Laurent who, having owned a one bedroom flat in Bury in September 2000. The question was if we could approximate the premium would be for a 90 year lease extension. Identical flats in Bury with 100 year plus lease were worth £260,200. The mid-range amount of ground rent was £65 billed yearly. The lease expired on 2 September 2092. Considering the 66 years outstanding we approximated the premium to the freeholder to extend the lease to be between £16,200 and £18,600 exclusive of fees.