Chances are that if you own a flat in Biddenham you actually own a long leasehold interest over your property
It is conventional wisdom that a property with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Barnsley Building Society | |
| Godiva Mortgages | |
| The Mortgage Works | |
| Yorkshire Building Society |
Retaining our service gives you enhanced control over the value of your Biddenham leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
18 months ago Jasper, came precariously close to the 80-year threshold with the lease on his garden flat in Biddenham. Having purchased his flat 19 years ago, the lease term was of no interest. As luck would have it, it dawned on him that he needed to take steps soon on a lease extension. Jasper was able to extend his lease just under the wire in August. Jasper and the landlord subsequently agreed on sum of £5,500 . If the lease had descended below 80 years, the premium would have become more costly by a minimum £1,150.
In 2010 we were contacted by Dr Lydia Brown who, having acquired a recently refurbished flat in Biddenham in January 1995. The question was if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Comparable premises in Biddenham with a long lease were in the region of £285,000. The mid-range ground rent payable was £55 invoiced monthly. The lease lapsed in 2105. Having 79 years remaining we estimated the premium to the landlord for the lease extension to be within £13,300 and £15,400 not including expenses.
In 2014 we were e-mailed by Dr U Ramírez who, having took over the lease of a one bedroom apartment in Biddenham in January 2000. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by an additional years. Similar premises in Biddenham with 100 year plus lease were worth £193,400. The average ground rent payable was £65 collected annually. The lease finished in 2085. Given that there were 59 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £21,900 and £25,200 not including fees.