The market value of Bardsley leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase materialy once the unexpired lease term is below than 80 years
Leasehold properties in Bardsley with in excess of one hundred years outstanding on the lease are sometimes 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 upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service will provide you enhanced control over the value of your Bardsley leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
After unsuccessful discussions with the landlord of her garden flat in Bardsley, Daisy initiated the lease extension process just as her lease was nearing the critical eighty-year mark. The lease extension was concluded in June 2009. The landlord’s fees were restricted to under four hundred pounds.
In 2013 we were approached by Mr and Mrs. V Davis who, having acquired a one bedroom apartment in Bardsley in April 2006. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by an additional years. Comparative flats in Bardsley with 100 year plus lease were worth £200,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease concluded in 2102. Considering the 77 years as a residual term we estimated the premium to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of expenses.
Ms M Bennett was assigned a lease of a purpose-built apartment in Bardsley in June 1998. The question was if we could shed any light on how much (roughly) price would be for a 90 year lease extension. Identical flats in Bardsley with an extended lease were worth £265,200. The average ground rent payable was £65 invoiced monthly. The lease ran out on 24 September 2091. Taking into account 66 years left we calculated the premium to the freeholder for the lease extension to be between £15,200 and £17,600 not including professional charges.