Bakewell leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. The majority of owners of residential leasehold property in Bakewell enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Bakewell you would be well advised to check if your lease has between seventy and 90 years remaining. There are compelling reasons why a Bakewell leaseholder with a lease having around 80 years left should take steps to ensure that a lease extension is effected without delay
It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 landlord in Bakewell,the lease extension solicitors that we work with will always be willing 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.
Last Spring Cameron, started to get close to the 80-year mark with the lease on his first floor flat in Bakewell. In buying his flat twenty years previously, the length of the lease was of little relevance. Thankfully, he became aware that he would soon be paying an escalated premium for Extending the lease. Cameron was able to extend his lease at the eleventh hour last April. Cameron and the freeholder ultimately settled on the final figure of £6,000 . If the lease had descended to less than eighty years, the figure would have increased by a minimum £950.
Last February we were phoned by Ms Jennifer Ramírez , who took over the lease of a one bedroom apartment in Bakewell in October 2007. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by ninety years. Similar properties in Bakewell with an extended lease were valued around £295,000. The average amount of ground rent was £45 collected monthly. The lease came to a finish in 2099. Having 74 years as a residual term we approximated the premium to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of expenses.
Mrs Freya Parker took over the lease of a ground floor apartment in Bakewell in October 1995. We are asked if we could approximate the premium would likely be for a ninety year lease extension. Comparable flats in Bakewell with an extended lease were worth £243,000. The average ground rent payable was £65 billed monthly. The lease concluded on 10 July 2088. Having 63 years unexpired we calculated the premium to the freeholder for the lease extension to be between £20,000 and £23,000 plus fees.