It’s an underpublicised truth that a West Bridgford residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the West Bridgford property market.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. If lease term slips under eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of leasehold owners in West Bridgford will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm whether you are eligibility. In some cases you may not qualify. There are also strict timeframes and procedures to follow once the process is instigated and you will need to be guided by your lawyer for the duration of the formalities.
It is generally considered that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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 |
Lease extensions in West Bridgford can be a difficult process. We recommend you secure guidance from a lawyer and surveyor with experience in this area.
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 a wealth of experience procuring West Bridgford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Christmas Jonathan, came seriously near to the 80-year mark with the lease on his studio apartment in West Bridgford. Having bought his home two decades ago, the lease term was of no importance. Fortunately, it dawned on him that he needed to take steps soon on Extending the lease. Jonathan arranged for a lease extension just under the wire last May. Jonathan and the freeholder via the managing agents ultimately agreed on an amount of £6,000 . If the lease had fallen to less than eighty years, the sum would have become more exhorbitant by a minimum £900.
Last Summer we were approach by Ms Zoe Khan , who owned a purpose-built flat in West Bridgford in September 1996. The dilemma was if we could estimate the premium could be to extend the lease by an additional years. Similar residencies in West Bridgford with an extended lease were in the region of £242,600. The mid-range amount of ground rent was £45 billed monthly. The lease ran out on 12 January 2093. Having 67 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £11,400 and £13,200 plus legals.
Last Autumn we were contacted by Mr and Mrs. M Davies , who purchased a garden apartment in West Bridgford in April 2012. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year extension to my lease. Comparative premises in West Bridgford with a long lease were valued about £280,000. The average ground rent payable was £55 billed annually. The lease ended in 2104. Taking into account 78 years remaining we estimated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of fees.