With a residential leasehold property in Bardsley, you are actually purchasing a right to reside in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should think about extending the lease 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 more expensive particularly when there are fewer than eighty years remaining. Residents in Bardsley with a lease drawing near to 81 years remaining should seriously think of extending it as soon as possible. Once the lease term has below eighty years left, under the current legislation the landlord is entitled to calculate and levy a greater amount, based on a technical multiplication, strangely termed as “marriage value” which is payable.
It is generally considered that a property with over 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a freeholder in Bardsley,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 Bardsley valuers.
Subsequent to protracted discussions with the freeholder of her two bedroom flat in Bardsley, Sophia started the lease extension process as the 80 year threshold was swiftly nearing. The legal work was finalised in February 2009. The landlord’s costs were negotiated to about 500 GBP.
In 2009 we were approached by Mr Hugo Morris who, having acquired a first floor apartment in Bardsley in January 1996. The question was if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year extension to my lease. Similar properties in Bardsley with 100 year plus lease were worth £248,000. The average ground rent payable was £65 billed yearly. The lease expired on 17 October 2089. Considering the 63 years remaining we approximated the compensation to the freeholder for the lease extension to be between £20,900 and £24,200 exclusive of expenses.
Mr Gabriel Cooper acquired a purpose-built apartment in Bardsley in May 2008. The dilemma was if we could estimate the price would likely be for a ninety year extension to my lease. Comparative premises in Bardsley with an extended lease were valued around £181,600. The average amount of ground rent was £55 billed every twelve months. The lease concluded in 2078. Taking into account 52 years remaining we approximated the premium to the landlord for the lease extension to be between £30,400 and £35,200 plus expenses.