Bury leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Most owners of residential leasehold property in Bury enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Bury you must investigate if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under 80 years, the cost of any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
It is generally accepted that a property with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide you better control over the value of your Bury leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Elijah was the the leasehold proprietor of a 2 bedroom apartment in Bury being sold with a lease of fraction over fifty eight years outstanding. Elijah informally spoke with his freeholder a well known local-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Elijah to exercise his statutory right. Elijah procured expert advice and was able to make a more informed judgement and deal with the matter and sell the property.
Mr and Mrs. U Allen acquired a first floor flat in Bury in January 2000. The dilemma was if we could shed any light on how much (approximately) premium could be to prolong the lease by a further 90 years. Identical homes in Bury with 100 year plus lease were in the region of £252,800. The mid-range ground rent payable was £65 collected monthly. The lease ran out on 16 April 2091. Considering the 65 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £17,100 and £19,800 exclusive of costs.
Last Summer we were contacted by Ms D Cook , who owned a one bedroom apartment in Bury in May 2002. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by ninety years. Identical properties in Bury with a long lease were worth £191,400. The mid-range amount of ground rent was £55 invoiced quarterly. The lease terminated in 2080. Given that there were 54 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £34,200 and £39,600 exclusive of expenses.