Chances are that where you own a flat in Bedford you actually own a long leasehold interest over your property
Leasehold premises in Bedford with more than one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
| 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 Bedford,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Bedford valuers.
Off the back of lengthy negotiations with the landlord of her one bedroom apartment in Bedford, Jordan started the lease extension process just as the lease was nearing the all-important 80-year mark. The lease extension was finalised in July 2015. The landlord’s costs were restricted to approximately 550 pounds.
Dr Abigail Parker acquired a one bedroom apartment in Bedford in February 2004. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by a further 90 years. Similar flats in Bedford with a long lease were valued around £264,000. The average amount of ground rent was £60 collected quarterly. The lease termination date was in 2078. Taking into account 53 years unexpired we approximated the premium to the freeholder for the lease extension to be between £37,100 and £42,800 not including expenses.
In 2010 we were e-mailed by Mr and Mrs. J Rogers who, having was assigned a lease of a ground floor flat in Bedford in March 2002. We are asked if we could shed any light on how much (approximately) price could be to extend the lease by an additional years. Identical properties in Bedford with 100 year plus lease were worth £225,400. The mid-range amount of ground rent was £45 collected yearly. The lease expired on 17 June 2089. Taking into account 64 years as a residual term we estimated the premium to the landlord to extend the lease to be between £16,200 and £18,600 exclusive of fees.