Unfortunately that a Bakewell residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Bakewell property market.Where your lease has approximately 90 years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips lower than 80 years - otherwise a higher amount will be due. The majority of leasehold owners in Bakewell will be able to extend under the legislation; however a conveyancer should be able to clarify if you qualify for an extension. In some cases you may not qualify. There are also strict timetables and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer from beginning to end of the formalities.
Leasehold residencies in Bakewell 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 property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.
| 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. |
| 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. |
| National Westminster Bank | 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. |
Irrespective of whether you are a tenant or a freeholder in Bakewell,the lease extension solicitors 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 Bakewell valuers.
Luke owned a conversion apartment in Bakewell on the market with a lease of just over 61 years left. Luke on an informal basis approached his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Luke to invoke his statutory right. Luke procured expert legal guidance and secured an acceptable deal without going to tribunal and readily saleable.
In 2010 we were called by Mr Sam Vincent who, having took over the lease of a garden flat in Bakewell in November 2012. The dilemma was if we could estimate the price could be for a ninety year lease extension. Comparative flats in Bakewell with 100 year plus lease were worth £174,200. The average amount of ground rent was £55 collected annually. The lease finished on 11 April 2076. Considering the 51 years unexpired we estimated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 plus costs.
In 2011 we were e-mailed by Mrs Amelia Peterson who, having was assigned a lease of a studio apartment in Bakewell in February 2005. The question was if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Comparative homes in Bakewell with 100 year plus lease were in the region of £285,000. The average ground rent payable was £45 collected every twelve months. The lease lapsed in 2096. Considering the 71 years unexpired we calculated the premium to the landlord for the lease extension to be between £12,400 and £14,200 plus costs.