The only way is down when it comes to Biddenham lease terms. Biddenham flats that have a lease term shorter than 80 years will drop in value at a rapid rate, and the cost to extend your lease will increase.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| 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. |
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you better control over the value of your Biddenham leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last Christmas Thomas, started to get near to the 80-year mark with the lease on his studio apartment in Biddenham. In buying his home 18 years previously, the unexpired term was of minimal relevance. Luckily, he became aware that he would imminently be paying an inflated amount for Extending the lease. Thomas arranged for a lease extension just under the wire last August. Thomas and the landlord in the end settled on sum of £5,000 . If the lease had slipped lower than 80 years, the premium would have gone up by a minimum £1,075.
In 2009 we were approached by Mr and Mrs. V Hill who, having owned a one bedroom flat in Biddenham in February 1997. We are asked if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Similar flats in Biddenham with 100 year plus lease were valued about £208,200. The mid-range amount of ground rent was £65 invoiced every twelve months. The lease expired on 5 April 2087. Taking into account 61 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £19,000 and £22,000 exclusive of fees.
In 2011 we were e-mailed by Mr and Mrs. K Rivera who, having owned a one bedroom flat in Biddenham in November 2005. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by ninety years. Comparative flats in Biddenham with a long lease were worth £260,000. The mid-range ground rent payable was £50 collected every twelve months. The lease expired in 2098. Having 72 years left we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including expenses.