Unfortunately that a Bury residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Bury property market.Once your lease nears 85ish years, you need to start considering 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 lower than eighty years - otherwise a higher amount will be payable. The majority of leasehold owners in Bury will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you qualify for an extension. In some cases you may not qualify. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer throughout the process.
Leasehold residencies in Bury with more than one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant 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. |
| 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. |
| 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. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Bury,the lease extension experts 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.
After lengthy discussions with the freeholder of her leasehold flat in Bury, Natalie initiated the lease extension process just as the lease was nearing the critical eighty-year deadline. The legal work was concluded in October 2010. The landlord’s charges were negotiated to about 650 GBP.
Last November we were contacted by Mrs Niamh Laurent , who moved into a one bedroom apartment in Bury in May 2008. We are asked if we could estimate the premium would likely be for a 90 year extension to my lease. Comparative residencies in Bury with a long lease were worth £250,400. The mid-range amount of ground rent was £65 collected monthly. The lease ran out on 18 November 2090. Considering the 64 years outstanding we estimated the premium to the freeholder for the lease extension to be between £19,000 and £22,000 plus fees.
Mr and Mrs. M Rivera acquired a first floor apartment in Bury in March 1996. The dilemma was if we could shed any light on how much (roughly) price could be to prolong the lease by an additional years. Identical flats in Bury with 100 year plus lease were valued around £184,000. The average amount of ground rent was £55 billed per annum. The lease concluded in 2079. Given that there were 53 years left we calculated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 plus costs.