Bishopston residential property owned on a long lease is a depreciating asset as the leaseholder merely owns the property for a set term.
Leasehold residencies in Bishopston with more than 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
Engaging our service will provide you increased control over the value of your Bishopston 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 have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Leon was the the leasehold proprietor of a high value flat in Bishopston on the market with a lease of fraction over 61 years unexpired. Leon on an informal basis approached his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Leon to invoke his statutory right. Leon obtained expert advice and secured satisfactory deal without resorting to tribunal and ending up with a market value flat.
Last Winter we were contacted by Dr Ali Turner , who moved into a basement flat in Bishopston in May 2010. We are asked if we could estimate the price would be for a 90 year extension to my lease. Comparable properties in Bishopston with a long lease were worth £246,800. The average amount of ground rent was £60 invoiced quarterly. The lease came to a finish in 2074. Given that there were 50 years left we estimated the compensation to the landlord to extend the lease to be within £44,700 and £51,600 exclusive of expenses.
Dr David Ramírez completed a one bedroom flat in Bishopston in January 1995. The dilemma was if we could shed any light on how much (roughly) price would likely be to extend the lease by a further 90 years. Similar properties in Bishopston with an extended lease were in the region of £203,200. The average ground rent payable was £65 collected every twelve months. The lease expired on 6 July 2085. Given that there were 61 years left we calculated the compensation to the landlord to extend the lease to be within £19,000 and £22,000 exclusive of expenses.