When it comes to long leasehold premises in Bury, you effectively rent 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 lengthy 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 increases markedly notably once there are fewer than 80 years remaining. Anyone in Bury with a lease nearing 81 years left should seriously consider extending it sooner as opposed to later. When the lease term has under eighty years left, under the current Act the freeholder is entitled to calculate and charge a larger premium, assessed on a technical multiplication, known as “marriage value” which is due.
Leasehold residencies in Bury with in excess of 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 secure professional help from a conveyancing solicitor and surveyor 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 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.
Following lengthy negotiations with the freeholder of her studio flat in Bury, Lauren started the lease extension process as the eighty year mark was fast nearing. The transaction was finalised in August 2014. The landlord’s costs were negotiated to below 500 GBP.
Last year we were phoned by Mr and Mrs. T Vincent , who owned a garden apartment in Bury in January 1997. The question was if we could estimate the compensation to the landlord would likely be to prolong the lease by ninety years. Identical premises in Bury with an extended lease were in the region of £200,000. The mid-range amount of ground rent was £50 invoiced every twelve months. The lease end date was on 1 May 2103. Taking into account 78 years outstanding we approximated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of costs.
In 2010 we were phoned by Mr Arthur Patel who, having purchased a garden flat in Bury in September 2004. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by ninety years. Similar homes in Bury with a long lease were in the region of £267,600. The average ground rent payable was £65 invoiced quarterly. The lease finished on 27 April 2092. Taking into account 67 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £14,300 and £16,400 exclusive of expenses.