The value of Bishops Cleeve leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase substantially once the remaining term is less than 80 years
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Bishops Cleeve can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and surveyor with experience in lease extensions.
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 procuring Bishops Cleeve lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following unsuccessful negotiations with the freeholder of her first floor flat in Bishops Cleeve, Mia initiated the lease extension process just as the lease was coming close to the critical eighty-year mark. The transaction was concluded in February 2008. The landlord’s fees were kept to an absolute minimum.
In 2012 we were phoned by Mr and Mrs. O Gunderson who, having was assigned a lease of a ground floor flat in Bishops Cleeve in August 1999. The question was if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by a further 90 years. Similar residencies in Bishops Cleeve with a long lease were worth £205,000. The mid-range amount of ground rent was £50 collected quarterly. The lease ran out in 2103. Given that there were 78 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £7,600 and £8,800 plus legals.
In 2009 we were approached by Mr and Mrs. Y Baker who, having acquired a ground floor flat in Bishops Cleeve in May 1997. The dilemma was if we could shed any light on how much (approximately) premium would likely be to prolong the lease by 90 years. Comparable flats in Bishops Cleeve with 100 year plus lease were valued about £267,600. The mid-range ground rent payable was £65 invoiced per annum. The lease finished on 4 August 2092. Taking into account 67 years unexpired we estimated the premium to the landlord for the lease extension to be within £14,300 and £16,400 not including costs.