For those whose Bishopston property is held on a long lease, the message is clear – if you ignore the situation, your property will ultimately revert to your landlord, leaving you empty-handed. The shorter the lease the lower the value of the property and the more it will cost to extend the lease.
It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years left, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Bishopston,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Bishopston valuers.
Hunter was the the leasehold proprietor of a high value flat in Bishopston being marketed with a lease of a few days over 59 years unexpired. Hunter informally contacted his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Hunter to exercise his statutory right. Hunter procured expert legal guidance and was able to make a more informed decision and deal with the matter and sell the flat.
Dr Zachary Girard purchased a first floor flat in Bishopston in June 1999. We are asked if we could shed any light on how much (roughly) premium could be to extend the lease by ninety years. Identical properties in Bishopston with an extended lease were valued around £210,600. The mid-range amount of ground rent was £45 invoiced annually. The lease finished on 14 September 2088. Taking into account 62 years left we calculated the compensation to the freeholder for the lease extension to be within £18,100 and £20,800 plus fees.
Last October we were e-mailed by Dr Francesca Mason , who completed a first floor flat in Bishopston in March 2005. We are asked if we could shed any light on how much (approximately) premium would be for a 90 year extension to my lease. Similar flats in Bishopston with 100 year plus lease were valued about £260,000. The mid-range ground rent payable was £50 invoiced monthly. The lease lapsed on 8 March 2099. Having 73 years outstanding we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including expenses.