There is no doubt about it a leasehold property in Biddenham is a wasting asset as a result of the diminishing lease term. If the residual term has, beyond 99 years to run then this decrease may be negligible that being said there will become a stage when a lease has fewer than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main logic behind why you should extend the lease sooner than later. Most flat owners in Biddenham will qualify for this right; nevertheless a conveyancer can advise whether you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold premises in Biddenham with over one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Biddenham can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and valuer with experience in lease extensions.
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 in-depth market knowledge dealing with Biddenham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Omar, started to get close to the eighty-year threshold with the lease on his one bedroom apartment in Biddenham. Having purchased his home two decades ago, the unexpired term was of little concern. Fortunately, he became aware that he would imminently be paying an escalated premium for a lease extension. Omar was able to extend his lease just under the wire last May. Omar and the freeholder via the managing agents subsequently settled on the final figure of £5,500 . If the lease had gone lower than 80 years, the amount would have increased by at least £1,050.
In 2012 we were contacted by Mr and Mrs. W Campbell who, having was assigned a lease of a first floor flat in Biddenham in November 2008. The dilemma was if we could shed any light on how much (roughly) price could be to prolong the lease by ninety years. Comparable residencies in Biddenham with an extended lease were worth £235,200. The mid-range ground rent payable was £45 billed yearly. The lease came to a finish in 2091. Having 66 years outstanding we calculated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 not including fees.
In 2012 we were phoned by Ms Molly Robinson who, having acquired a ground floor apartment in Biddenham in August 1998. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Similar premises in Biddenham with 100 year plus lease were in the region of £280,000. The average amount of ground rent was £55 invoiced per annum. The lease finished on 19 February 2102. Given that there were 77 years left we approximated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of fees.