Biddenham leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. It is the case that most Biddenham tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Biddenham you really ought to see if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension sharply increases as part of the premium you pay is what is known as a marriage value
Leasehold properties in Biddenham with over 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Biddenham can be a difficult process. We recommend you procure guidance from a lawyer and valuer 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.
Half a year ago Omar, came precariously near to the 80-year mark with the lease on his leasehold flat in Biddenham. In buying his flat two decades ago, the lease term was of minimal significance. by good luck, he realised he needed to take steps soon on Extending the lease. Omar extended the lease at the eleventh hour in April. Omar and the freeholder via the management company ultimately agreed on sum of £5,500 . If the lease had slid below 80 years, the price would have escalated by a minimum £1,150.
Last year we were e-mailed by Mr K Thomas , who owned a first floor flat in Biddenham in February 2009. The question was if we could estimate the premium could be for a 90 year extension to my lease. Comparable flats in Biddenham with an extended lease were in the region of £280,000. The average amount of ground rent was £55 billed yearly. The lease lapsed in 2103. Considering the 78 years as a residual term we calculated the premium to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of professional charges.
Mr and Mrs. B Lee completed a garden apartment in Biddenham in March 1996. The question was if we could estimate the premium would likely be to prolong the lease by an additional years. Similar residencies in Biddenham with 100 year plus lease were valued about £191,000. The mid-range amount of ground rent was £65 collected yearly. The lease elapsed on 17 July 2083. Taking into account 58 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £23,800 and £27,400 not including legals.