The market value of a leasehold property in Biddenham is impacted by how many years the lease has remaining. If it is near to or less than 80 years you should expect difficulties on re-sale, so it is advisable to arrange for the lease to be extended prior to purchasing. It is ideal to start the process of extending the lease is when the lease still has 82 years unexpired so that all matters can be addressed well before the eighty year threshold. Leasehold Reform legislation entitles Biddenham qualifying lessees to a 90 year extension added to their unexpired lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Biddenham with more than 100 years remaining on the lease are sometimes referred to as ‘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 buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Lease extensions in Biddenham can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and surveyor 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 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.
Last year Leon, came seriously close to the 80-year mark with the lease on his one bedroom apartment in Biddenham. Having bought his flat twenty years previously, the lease term was of little bearing. Fortunately, he realised he needed to take steps soon on a lease extension. Leon extended the lease at the eleventh hour in August. Leon and the freeholder via the managing agents subsequently settled on a premium of £5,000 . If he failed to meet the deadline, the price would have escalated by at least £875.
Dr Lewis Lambert purchased a purpose-built apartment in Biddenham in April 1995. We are asked if we could shed any light on how much (roughly) price would likely be for a ninety year extension to my lease. Comparable homes in Biddenham with 100 year plus lease were in the region of £191,000. The mid-range amount of ground rent was £65 billed quarterly. The lease finished in 2083. Given that there were 58 years as a residual term we approximated the premium to the landlord for the lease extension to be within £23,800 and £27,400 not including fees.
Dr Zoe Carter purchased a recently refurbished apartment in Biddenham in February 2006. The question was if we could approximate the premium would likely be to prolong the lease by 90 years. Comparable homes in Biddenham with a long lease were in the region of £250,000. The average ground rent payable was £50 collected quarterly. The lease lapsed on 5 March 2094. Considering the 69 years remaining we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus fees.