There is no doubt about it a leasehold property in Bury is a wasting asset as a result of the diminishing lease term. Where the lease has, in excess of one hundred years remaining then this decrease may be fractional nevertheless there will become a stage when a lease has under than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should consider extending sooner than later. Most flat owners in Bury will qualify for this right; nevertheless a conveyancer can confirm whether you are eligible to extend your lease. 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.
It is generally considered that a property with over one hundred 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 decades to come.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with handle Bury lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Off the back of protracted negotiations with the freeholder of her basement apartment in Bury, Chantelle initiated the lease extension process as the eighty year deadline was rapidly nearing. The transaction completed in March 2013. The landlord’s costs were kept to an absolute minimum.
In 2010 we were contacted by Mr U Reed who, having was assigned a lease of a basement apartment in Bury in May 1999. The question was if we could approximate the premium could be for a 90 year lease extension. Comparable residencies in Bury with 100 year plus lease were in the region of £267,600. The mid-range amount of ground rent was £65 invoiced every twelve months. The lease ran out in 2093. Given that there were 67 years unexpired we estimated the premium to the freeholder to extend the lease to be between £14,300 and £16,400 exclusive of costs.
Dr P Garcia purchased a basement apartment in Bury in July 2012. We are asked if we could approximate the compensation to the landlord could be to extend the lease by a further 90 years. Identical residencies in Bury with a long lease were worth £201,200. The average amount of ground rent was £55 collected every twelve months. The lease terminated in 2082. Taking into account 56 years unexpired we calculated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 plus expenses.