The closer a domestic lease in Bury gets to zero years unexpired, the more it reduces the value of the property. If the residual term has, more than 99 years to run then this decrease may be negligible however there will become a stage when a lease has under than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary reason why you should consider extending without delay. Many flat owners in Bury will meet the qualifying criteria; nevertheless a conveyancing solicitor should be able to advise whether you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 45 years left, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Lease extensions in Bury can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and valuer with experience in this area.
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 dealing with Bury lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of lengthy negotiations with the freeholder of her studio flat in Bury, Samantha initiated the lease extension process just as her lease was approaching the critical eighty-year deadline. The transaction completed in June 2011. The freeholder’s costs were kept to an absolute minimum.
In 2014 we were called by Ms Phoebe Vincent who, having completed a purpose-built flat in Bury in July 2006. We are asked if we could approximate the price would be for a ninety year extension to my lease. Similar flats in Bury with a long lease were valued about £218,400. The average amount of ground rent was £60 invoiced every twelve months. The lease terminated in 2085. Having 59 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £27,600 and £31,800 not including fees.
Ms Jodie Petit completed a ground floor apartment in Bury in March 2002. The dilemma was if we could estimate the premium would be for a ninety year lease extension. Comparative homes in Bury with 100 year plus lease were valued around £205,000. The average amount of ground rent was £50 collected monthly. The lease ended on 15 March 2105. Considering the 79 years remaining we approximated the premium to the landlord to extend the lease to be within £7,600 and £8,800 exclusive of costs.