Bishops Cleeve leases on residential properties are gradually losing value. if your lease has approximately ninety years remaining, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease dips below this level then you begin incurring an additional element called marriage value. Flat owners in Bishops Cleeve will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to check if you qualify. In certain cases you may not be entitled. There are also strict deadlines and steps to follow once the process has started so it’s sensible to be guided by a lawyer during the process.
Leasehold residencies in Bishops Cleeve with in excess of 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you enhanced control over the value of your Bishops Cleeve leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Harry owned a high value apartment in Bishops Cleeve being marketed with a lease of a little over 72 years left. Harry on an informal basis approached his freeholder being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Harry to exercise his statutory right. Harry procured expert legal guidance and was able to make an informed decision and handle with the matter and sell the flat.
In 2009 we were phoned by Mr V Taylor who, having took over the lease of a purpose-built flat in Bishops Cleeve in February 2008. The dilemma was if we could shed any light on how much (approximately) price would likely be to extend the lease by ninety years. Identical homes in Bishops Cleeve with an extended lease were valued around £210,000. The average ground rent payable was £50 billed quarterly. The lease concluded on 3 February 2104. Given that there were 79 years as a residual term we approximated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including legals.
Mrs T Anderson completed a one bedroom apartment in Bishops Cleeve in January 2003. We are asked if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Comparable properties in Bishops Cleeve with a long lease were valued about £275,000. The average amount of ground rent was £45 collected annually. The lease lapsed on 4 February 2093. Considering the 68 years unexpired we estimated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of professional charges.