The nearer a domestic lease in Bishops Cleeve nears to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, over 99 years remaining then this decrease may be fractional that being said there will become a point in time when a lease has fewer than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should extend the lease without delay. The majority of flat owners in Bishops Cleeve will meet the qualifying criteria; however a conveyancer should be able to confirm whether you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is generally accepted that a residential leasehold with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with handle Bishops Cleeve 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 conveyancing solicitor we work with provide it.
Following lengthy correspondence with the landlord of her ground floor flat in Bishops Cleeve, Sian initiated the lease extension process as the eighty year deadline was quickly nearing. The lease extension completed in September 2011. The freeholder’s costs were negotiated to approximately six hundred GBP.
Dr Gabriel Turner acquired a one bedroom apartment in Bishops Cleeve in August 2008. The question was if we could shed any light on how much (approximately) premium could be to extend the lease by an additional years. Comparable premises in Bishops Cleeve with a long lease were in the region of £166,800. The mid-range ground rent payable was £50 invoiced quarterly. The lease ended on 12 March 2076. Taking into account 50 years left we approximated the premium to the freeholder to extend the lease to be between £32,300 and £37,400 not including costs.
In 2011 we were contacted by Mr and Mrs. G Girard who, having owned a first floor apartment in Bishops Cleeve in October 2010. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by ninety years. Identical properties in Bishops Cleeve with a long lease were in the region of £280,000. The mid-range ground rent payable was £45 collected monthly. The lease elapsed in 2096. Having 70 years left we approximated the premium to the landlord for the lease extension to be within £12,400 and £14,200 not including costs.