Bardsley leases on residential deteriorating in value. if your lease has approximately ninety years unexpired, you should start considering the need for a lease extension. If lease term is less than eighty years, you will then have to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Bardsley will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancer to check your eligibility. In some circumstances you may not be entitled. There are also strict timetables and formalities to follow once the process has commenced so it’s best to be guided by a conveyancer during the process.
It is generally accepted that a property with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
Lease extensions in Bardsley can be a difficult process. We recommend you obtain professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
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 Bardsley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Theo, came dangerously close to the eighty-year threshold with the lease on his basement flat in Bardsley. Having bought his home two decades ago, the length of the lease was of little bearing. by good luck, he noticed he would imminently be paying way over the odds for a lease extension. Theo arranged for a lease extension just under the wire last April. Theo and the freeholder via the managing agents subsequently agreed on an amount of £5,500 . If the lease had descended below eighty years, the premium would have increased by a minimum £1,075.
In 2014 we were called by Mr Aarav Allen who, having moved into a one bedroom flat in Bardsley in May 1998. We are asked if we could estimate the price would likely be for a 90 year extension to my lease. Comparative homes in Bardsley with 100 year plus lease were in the region of £223,400. The mid-range amount of ground rent was £60 billed yearly. The lease ran out in 2085. Considering the 59 years outstanding we approximated the premium to the freeholder for the lease extension to be between £27,600 and £31,800 exclusive of fees.
Last Winter we were phoned by Ms O Lefebvre , who bought a recently refurbished apartment in Bardsley in March 2003. We are asked if we could shed any light on how much (roughly) premium would likely be for a 90 year extension to my lease. Comparable premises in Bardsley with 100 year plus lease were worth £205,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease came to a finish on 25 July 2105. Given that there were 79 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 not including costs.