Bishops Cleeve leases on domestic properties are gradually losing value. if your lease has about ninety years left, you should start thinking about a lease extension. An important point to note is that it is desirable for the lease extension to be in place before the term of the current lease dips lower than 80 years - otherwise a higher premium will be due. Leasehold owners in Bishops Cleeve will usually qualify for a lease extension; however a solicitor should be able check if you qualify. In some cases you may not qualify. There are prescribed timetables and steps to follow once the process is triggered so it’s wise to be guided by a conveyancing solicitor during the process.
Leasehold properties in Bishops Cleeve with more than 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Birmingham Midshires | 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. |
Lease extensions in Bishops Cleeve can be a difficult process. We recommend you obtain guidance from a lawyer and valuer 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 in-depth market knowledge dealing with 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.
Subsequent to protracted correspondence with the landlord of her one bedroom apartment in Bishops Cleeve, Morgan initiated the lease extension process as the eighty year deadline was swiftly approaching. The transaction completed in July 2010. The freeholder’s charges were restricted to slightly above 550 pounds.
Ms L Stewart moved into a ground floor apartment in Bishops Cleeve in October 2011. The question was if we could estimate the premium could be for a ninety year extension to my lease. Comparable premises in Bishops Cleeve with 100 year plus lease were valued around £250,400. The mid-range amount of ground rent was £65 invoiced per annum. The lease expiry date was on 14 January 2089. Having 64 years unexpired we estimated the compensation to the landlord to extend the lease to be between £19,000 and £22,000 exclusive of legals.
Last Christmas we were e-mailed by Mr L Young , who took over the lease of a studio apartment in Bishops Cleeve in November 2007. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by 90 years. Identical properties in Bishops Cleeve with an extended lease were valued about £191,400. The mid-range amount of ground rent was £55 invoiced annually. The lease elapsed on 20 May 2079. Having 54 years outstanding we calculated the premium to the landlord for the lease extension to be between £34,200 and £39,600 exclusive of costs.