Unfortunately that a Bishopston residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Bishopston property market.Where your lease has approximately ninety years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips lower than eighty years - otherwise a higher premium will be due. The majority of flat owners in Bishopston will be able to extend under the legislation; however a lawyer should be able to confirm whether you are eligibility. In some cases you may not qualify. There are also strict timeframes and procedures to follow once the process is instigated and you will need to be guided by your lawyer throughout the process.
Leasehold residencies in Bishopston with more than one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Bishopston,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Bishopston valuers.
Trailing unsuccessful discussions with the landlord of her two bedroom flat in Bishopston, Hollie started the lease extension process as the eighty year deadline was rapidly nearing. The transaction completed in September 2005. The freeholder’s charges were negotiated to below 600 pounds.
Last Winter we were called by Dr Tommy Wood , who completed a newly refurbished apartment in Bishopston in May 2003. The question was if we could approximate the price could be to extend the lease by 90 years. Comparable flats in Bishopston with an extended lease were worth £275,000. The average ground rent payable was £55 billed quarterly. The lease lapsed on 17 August 2101. Considering the 76 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of fees.
In 2014 we were phoned by Mr and Mrs. G Baker who, having took over the lease of a garden flat in Bishopston in February 1998. We are asked if we could approximate the premium could be for a ninety year lease extension. Comparative properties in Bishopston with 100 year plus lease were valued about £176,200. The mid-range ground rent payable was £65 billed annually. The lease expiry date was in 2081. Given that there were 56 years left we estimated the premium to the freeholder for the lease extension to be within £29,500 and £34,000 not including professional charges.