As the the remaining lease term of a Bury residential lease lessens so does its value and therefore the value of your property. If the lease has, over 99 years to run then this decrease may be of little impact however there will become a stage when a lease has under than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should consider extending without delay. The majority of flat owners in Bury will meet the qualifying criteria; however a lawyer will be able to advise if you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold residencies in Bury with more than one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| 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. |
| 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. |
| 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 professional help from a conveyancing solicitor and surveyor with experience in lease extensions.
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.
Joshua owned a high value apartment in Bury being sold with a lease of fraction over 59 years left. Joshua informally approached his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Joshua to exercise his statutory right. Joshua obtained expert advice and secured an acceptable deal informally and sell the flat.
In 2014 we were contacted by Mr and Mrs. H Moore who, having purchased a newly refurbished apartment in Bury in November 2006. The question was if we could shed any light on how much (approximately) premium would likely be to prolong the lease by ninety years. Identical properties in Bury with an extended lease were worth £270,000. The average amount of ground rent was £65 billed per annum. The lease finished on 2 April 2094. Given that there were 68 years unexpired we approximated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 plus costs.
In 2014 we were called by Dr K Lambert who, having bought a first floor flat in Bury in August 2001. The dilemma was if we could estimate the premium could be for a ninety year extension to my lease. Similar homes in Bury with 100 year plus lease were valued around £208,600. The mid-range ground rent payable was £60 invoiced annually. The lease elapsed on 22 November 2083. Given that there were 57 years unexpired we approximated the premium to the freeholder to extend the lease to be within £30,400 and £35,200 not including expenses.