With a long leasehold property in Bury, you are in fact renting it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive particularly when there are less than 80 years left. Residents in Bury with a lease drawing near to 81 years remaining should seriously think of extending it as soon as possible. Once a lease has under 80 years outstanding, under the current legislation the landlord can calculate and demand a larger premium, based on a technical computation, known as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 30 years left, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | 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. |
Regardless of whether you are a tenant or a landlord in Bury,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Bury valuers.
After unsuccessful negotiations with the freeholder of her ground floor apartment in Bury, Leah started the lease extension process as the eighty year deadline was quickly advancing. The transaction was finalised in November 2014. The freeholder’s charges were negotiated to less than 450 GBP.
In 2010 we were phoned by Dr Andrew Garcia who, having moved into a basement flat in Bury in January 2000. The dilemma was if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Comparative flats in Bury with an extended lease were valued about £275,000. The mid-range amount of ground rent was £45 collected monthly. The lease ran out in 2093. Considering the 68 years remaining we estimated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 plus professional charges.
Mr S Gunderson was assigned a lease of a first floor apartment in Bury in January 2005. We are asked if we could shed any light on how much (roughly) price would be for a ninety year lease extension. Similar residencies in Bury with 100 year plus lease were in the region of £216,000. The mid-range amount of ground rent was £60 invoiced yearly. The lease expiry date was on 19 June 2083. Considering the 58 years remaining we calculated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 exclusive of expenses.