Unfortunately that a Bury residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Bury property prices.Once your lease gets to 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below 80 years - otherwise a higher amount will be due. Most flat owners in Bury will be able to extend under the legislation; however a conveyancer will be able to confirm if you qualify for an extension. In some situations you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancer throughout the formalities.
Leasehold residencies in Bury with more than 100 years remaining 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 situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Bury can be a difficult process. We recommend you get professional help from a lawyer 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 lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following unsuccessful negotiations with the freeholder of her two bedroom flat in Bury, Abbie commenced the lease extension process as the 80 year threshold was rapidly approaching. The legal work was concluded in July 2006. The landlord’s charges were restricted to a tad over 450 pounds.
Last Christmas we were e-mailed by Dr G Michel , who acquired a one bedroom apartment in Bury in September 2009. We are asked if we could shed any light on how much (roughly) premium would likely be for a ninety year extension to my lease. Similar properties in Bury with 100 year plus lease were worth £179,200. The mid-range ground rent payable was £55 billed monthly. The lease elapsed on 20 November 2076. Taking into account 51 years unexpired we estimated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 not including legals.
In 2014 we were approached by Mrs Lucy Reed who, having was assigned a lease of a purpose-built apartment in Bury in March 1995. We are asked if we could estimate the premium could be for a 90 year lease extension. Comparative residencies in Bury with a long lease were valued about £285,000. The average amount of ground rent was £45 billed yearly. The lease ran out in 2096. Taking into account 71 years unexpired we estimated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 plus costs.