There is no doubt about it a leasehold flat or house in Bodmin is a wasting asset as a result of the diminishing lease term. Where the residual term has, over one hundred years to run then this decrease may be negligible that being said there will become a point in time when a lease has less than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary logic behind why you should consider extending without delay. Many flat owners in Bodmin will meet the qualifying criteria; that being said a conveyancer should be able to advise whether you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold residencies in Bodmin with over 100 years outstanding on the lease are sometimes 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 to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | 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. |
| 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 Bodmin can be a difficult process. We recommend you secure guidance from a lawyer 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 Bodmin lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Twenty four months ago Harvey, came precariously close to the eighty-year mark with the lease on his basement apartment in Bodmin. Having purchased his property two decades ago, the length of the lease was of no significance. Thankfully, he realised he needed to take steps soon on Extending the lease. Harvey extended the lease just ahead of time in June. Harvey and the landlord who owned the flat above subsequently settled on sum of £6,000 . If he had missed the deadline, the sum would have increased by at least £1,100.
In 2009 we were approached by Dr Hannah Turner who, having purchased a one bedroom apartment in Bodmin in October 2009. The question was if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparable residencies in Bodmin with an extended lease were in the region of £267,600. The average ground rent payable was £65 collected every twelve months. The lease came to a finish on 26 November 2092. Given that there were 67 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £14,300 and £16,400 exclusive of fees.
Mr Reuben Bennett completed a one bedroom flat in Bodmin in May 1999. The question was if we could estimate the compensation to the landlord would be for a 90 year lease extension. Comparative properties in Bodmin with an extended lease were in the region of £201,200. The average amount of ground rent was £55 billed annually. The lease terminated in 2081. Having 56 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 not including professional charges.