The nearer a residential lease in Bishops Cleeve gets to zero years unexpired, the the greater the reduction in the value of the property. Where the residual term has, beyond 100 years remaining then this decrease may be negligible however there will become a stage when a lease has less than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should extend the lease without delay. The majority of flat owners in Bishops Cleeve will meet the qualifying criteria; that being said a conveyancer should be able to advise whether you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold residencies in Bishops Cleeve with over one hundred 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 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 |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Bishops Cleeve,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Bishops Cleeve valuers.
Following lengthy discussions with the landlord of her leasehold flat in Bishops Cleeve, Naomi commenced the lease extension process as the 80 year deadline was rapidly approaching. The legal work was concluded in May 2009. The freeholder’s costs were kept to an absolute minimum.
Last Summer we were contacted by Dr R Scott , who purchased a purpose-built flat in Bishops Cleeve in November 2004. We are asked if we could approximate the price could be for a ninety year lease extension. Identical residencies in Bishops Cleeve with an extended lease were valued around £235,600. The average amount of ground rent was £60 collected quarterly. The lease concluded on 27 March 2088. Having 62 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £21,900 and £25,200 exclusive of professional charges.
Last November we were e-mailed by Mr H Morris , who bought a newly refurbished apartment in Bishops Cleeve in September 2008. We are asked if we could estimate the price could be to extend the lease by 90 years. Comparable homes in Bishops Cleeve with an extended lease were in the region of £174,200. The average ground rent payable was £55 billed yearly. The lease finished on 26 May 2077. Considering the 51 years remaining we approximated the premium to the landlord for the lease extension to be between £31,400 and £36,200 not including legals.