West Bridgford leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Legislation has been in place for sometime now which entitles qualifying West Bridgford residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in West Bridgford you really ought to check if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
Leasehold residencies in West Bridgford with over one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder in West Bridgford,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with West Bridgford valuers.
18 months ago Eliot, came dangerously near to the 80-year mark with the lease on his one bedroom flat in West Bridgford. Having bought his property two decades ago, the unexpired term was of little interest. Fortunately, it dawned on him that he would soon be paying an inflated amount for Extending the lease. Eliot arranged for a lease extension just ahead of time last September. Eliot and the freeholder subsequently settled on the final figure of £5,000 . If he not met the deadline, the figure would have escalated by at least £925.
Mr Elijah Adams owned a garden apartment in West Bridgford in September 2003. The dilemma was if we could shed any light on how much (roughly) price could be for a ninety year lease extension. Identical residencies in West Bridgford with 100 year plus lease were worth £200,800. The average ground rent payable was £65 billed monthly. The lease concluded in 2085. Having 60 years left we estimated the premium to the freeholder to extend the lease to be within £20,900 and £24,200 not including legals.
Last Spring we were approach by Mr and Mrs. G Morgan , who purchased a first floor apartment in West Bridgford in October 2008. The question was if we could shed any light on how much (roughly) price could be for a 90 year extension to my lease. Comparative homes in West Bridgford with 100 year plus lease were worth £255,000. The mid-range ground rent payable was £50 billed annually. The lease end date was on 20 May 2096. Having 71 years left we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including expenses.