With a domestic leasehold premises in Bardsley, you are actually buying a right to live in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may consider a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater particularly when there are fewer than 80 years remaining. Anyone in Bardsley with a lease approaching 81 years unexpired should seriously think of extending it without delay. When a lease has fewer than eighty years remaining, under the current legislation the landlord is entitled to calculate and charge a larger amount, based on a technical multiplication, known as “marriage value” which is due.
Leasehold residencies in Bardsley with in excess of one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| Godiva Mortgages | 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Regardless of whether you are a tenant or a landlord in Bardsley,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 experience and the close ties they enjoy with Bardsley valuers.
During the course of the last few months Ben, started to get near to the eighty-year mark with the lease on his first floor apartment in Bardsley. Having bought his property two decades ago, the length of the lease was of no significance. Fortunately, he recognised he needed to take action soon on a lease extension. Ben was able to extend his lease just ahead of time in January. Ben and the freeholder via the management company in the end settled on an amount of £5,500 . If he not met the deadline, the amount would have become more costly by at least £900.
Mr and Mrs. L Richardson acquired a basement apartment in Bardsley in January 1995. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by 90 years. Identical homes in Bardsley with 100 year plus lease were worth £210,000. The mid-range ground rent payable was £50 billed monthly. The lease came to a finish on 9 June 2106. Having 80 years left we calculated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 plus expenses.
Ms Francesca Wilson acquired a purpose-built apartment in Bardsley in June 2000. The question was if we could shed any light on how much (approximately) premium would likely be to extend the lease by 90 years. Comparable properties in Bardsley with a long lease were worth £280,000. The mid-range amount of ground rent was £45 collected quarterly. The lease terminated on 24 October 2095. Taking into account 69 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of professional charges.