Owning a flat usually means owning a lease of the property, which has a set term of years. your lease will usually be granted for a set period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Avonmouth. Clearly, the term of lease left shortens as time goes by. This is often ignored and only becomes a problem when the residence needs to be sold or re-mortgaged. The shorter the lease the less it is worth and the more it will cost to procure a lease extension. Qualifying long lease owners in Avonmouth have the right to extend the lease for a further ninety years under the 1993 Leasehold Reform Act. Please give careful deliberation before putting off your Avonmouth lease extension. Putting off that expense now simply increases the price you will ultimately have to pay for a lease extension
It is generally considered that a property with over 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with handle Avonmouth 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 conveyancer we work with provide it.
Finn was the the leasehold proprietor of a 2 bedroom apartment in Avonmouth being marketed with a lease of just over sixty years remaining. Finn on an informal basis spoke with his freeholder a well known London-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £100 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Finn to invoke his statutory right. Finn procured expert legal guidance and secured satisfactory resolution without resorting to tribunal and readily saleable.
Last month we were phoned by Dr U Lefebvre , who bought a one bedroom apartment in Avonmouth in September 2010. The question was if we could estimate the price could be to prolong the lease by ninety years. Comparable flats in Avonmouth with 100 year plus lease were in the region of £176,200. The mid-range ground rent payable was £65 billed every twelve months. The lease finished on 8 September 2081. Considering the 56 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £29,500 and £34,000 plus legals.
Mr and Mrs. E Wilson took over the lease of a one bedroom apartment in Avonmouth in August 2011. The dilemma was if we could shed any light on how much (approximately) price would likely be for a ninety year extension to my lease. Comparative properties in Avonmouth with a long lease were valued about £242,600. The mid-range amount of ground rent was £45 collected per annum. The lease ended on 25 July 2092. Taking into account 67 years unexpired we estimated the premium to the freeholder to extend the lease to be within £11,400 and £13,200 exclusive of expenses.