As the length of the unexpired term of a Bardsley residential lease decreases so does its value and therefore the value of your property. If the lease has, more than 125 years remaining then this decrease may be of little impact nevertheless there will become a point in time when a lease has under than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary reason why you should consider extending without delay. Many flat owners in Bardsley will meet the qualifying criteria; nevertheless a conveyancer can confirm if you qualify to extend your lease. 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 in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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 secure professional help from a conveyancer and valuer with experience in this area.
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.
Eliot was the the leasehold owner of a studio apartment in Bardsley being marketed with a lease of fraction over 61 years left. Eliot informally spoke with his landlord being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £100 annually. Ordinarily, ground rent would not be due on a lease extension were Eliot to invoke his statutory right. Eliot obtained expert advice and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
Last Spring we were contacted by Ms J Miller , who moved into a basement apartment in Bardsley in February 2000. The question was if we could approximate the price could be for a 90 year extension to my lease. Comparable flats in Bardsley with an extended lease were in the region of £243,000. The mid-range ground rent payable was £65 billed every twelve months. The lease ended in 2088. Considering the 63 years outstanding we calculated the compensation to the landlord to extend the lease to be between £20,000 and £23,000 plus legals.
Last August we were phoned by Mr Omar Bailey , who took over the lease of a one bedroom apartment in Bardsley in September 2005. The dilemma was if we could estimate the price could be to extend the lease by a further 90 years. Comparable premises in Bardsley with 100 year plus lease were in the region of £181,600. The mid-range ground rent payable was £55 collected yearly. The lease concluded on 2 March 2077. Given that there were 52 years remaining we calculated the premium to the freeholder for the lease extension to be within £30,400 and £35,200 not including legals.