It’s a harsh certainty that a Biddenham residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Biddenham property prices.Where your lease has approximately ninety years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls under 80 years - otherwise a higher premium will be payable. Most leasehold owners in Biddenham will be able to extend under the legislation; however a lawyer should be able to clarify whether you are eligibility. In some cases you may not qualify. There are also strict timeframes and procedures to be adhered to once the process is instigated and you will need to be guided by your lawyer for the duration of the formalities.
It is generally considered that a property with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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.
Aarav owned a conversion apartment in Biddenham on the market with a lease of fraction over 59 years outstanding. Aarav informally approached his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £125 yearly. Ordinarily, ground rent would not be due on a lease extension were Aarav to invoke his statutory right. Aarav obtained expert legal guidance and secured an acceptable resolution informally and sell the property.
Last Spring we were approach by Dr M Bell , who owned a garden flat in Biddenham in October 2008. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by an additional years. Similar premises in Biddenham with 100 year plus lease were worth £245,000. The mid-range ground rent payable was £50 collected yearly. The lease finished on 17 November 2094. Given that there were 68 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including expenses.
In 2011 we were e-mailed by Dr Louise Taylor who, having was assigned a lease of a purpose-built apartment in Biddenham in March 2009. The question was if we could shed any light on how much (roughly) price would be for a 90 year lease extension. Comparative properties in Biddenham with an extended lease were worth £285,000. The mid-range ground rent payable was £55 collected every twelve months. The lease finished in 2105. Given that there were 79 years unexpired we calculated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 plus fees.