As the the remaining lease term of a Bardsley residential lease lessens so does its value and therefore the value of your property. Where the residual term has, beyond 100 years remaining then this decrease may be of little impact that being said there will become a point in time when a lease has fewer than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should consider extending sooner than later. Most flat owners in Bardsley will meet the qualifying criteria; nevertheless a conveyancer can advise if you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the property will be worth the same as a freehold for many years ahead.
| 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. |
| 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. |
| 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 |
| 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. |
Regardless of whether you are a tenant or a freeholder in Bardsley,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Bardsley valuers.
Subsequent to unsuccessful correspondence with the landlord of her garden flat in Bardsley, Rebecca commenced the lease extension process just as the lease was nearing the crucial eighty-year threshold. The transaction was finalised in October 2015. The freeholder’s charges were restricted to slightly above 550 GBP.
Last Spring we were e-mailed by Mr and Mrs. O Davis , who took over the lease of a basement flat in Bardsley in March 2010. We are asked if we could shed any light on how much (roughly) price would likely be to prolong the lease by ninety years. Comparable flats in Bardsley with a long lease were worth £280,000. The mid-range ground rent payable was £45 collected annually. The lease ended on 21 March 2096. Taking into account 70 years remaining we estimated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 plus expenses.
Last Christmas we were e-mailed by Dr Hannah Lefèvre , who took over the lease of a purpose-built flat in Bardsley in February 2012. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparative premises in Bardsley with a long lease were worth £223,400. The mid-range amount of ground rent was £60 billed per annum. The lease came to a finish in 2085. Having 59 years unexpired we approximated the premium to the freeholder to extend the lease to be within £27,600 and £31,800 plus expenses.