The market value of Byfleet leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate materialy once the unexpired lease term is less than 80 years
Leasehold properties in Byfleet with over 100 years outstanding on the lease are often regarded as a ‘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 freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
The lawyers that we work with undertake Byfleet lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Jason was the the leasehold proprietor of a studio flat in Byfleet on the market with a lease of a few days over 61 years remaining. Jason on an informal basis approached his landlord a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Jason to exercise his statutory right. Jason procured expert legal guidance and secured satisfactory deal without going to tribunal and sell the flat.
Last Autumn we were e-mailed by Mr and Mrs. A Bennett , who was assigned a lease of a garden flat in Byfleet in February 2001. The dilemma was if we could estimate the price would likely be for a 90 year extension to my lease. Similar residencies in Byfleet with a long lease were valued around £250,000. The mid-range ground rent payable was £50 billed every twelve months. The lease terminated on 26 February 2094. Having 69 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of professional charges.
Mrs G Murphy moved into a basement flat in Byfleet in November 2002. The dilemma was if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparable homes in Byfleet with 100 year plus lease were valued about £290,000. The average ground rent payable was £60 collected annually. The lease termination date was on 19 January 2105. Taking into account 80 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 not including fees.