Bishopston leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. It is the case that most Bishopston tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Bishopston you would be well advised to see if your lease has between 70 and 90 years remaining. There are compelling reasons why a Bishopston flat owner with a lease having around eighty years unexpired should take steps to ensure that a lease extension is effected without delay
It is generally considered that a property 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 35 years unexpired, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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 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; |
| 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 |
| Yorkshire 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. |
Lease extensions in Bishopston can be a difficult process. We recommend you procure guidance from a conveyancer and valuer well versed in the legislation and lease extension process.
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 Bishopston 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 lengthy correspondence with the freeholder of her first floor flat in Bishopston, Amy started the lease extension process as the 80 year mark was quickly advancing. The legal work was finalised in September 2008. The landlord’s costs were negotiated to under six hundred pounds.
Ms E Moreau moved into a one bedroom apartment in Bishopston in October 2012. The question was if we could approximate the premium could be to extend the lease by a further 90 years. Comparative premises in Bishopston with 100 year plus lease were valued around £246,800. The mid-range ground rent payable was £60 billed per annum. The lease finished in 2076. Having 50 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £44,700 and £51,600 not including professional charges.
In 2014 we were e-mailed by Mr and Mrs. S Williams who, having moved into a studio flat in Bishopston in November 2007. We are asked if we could shed any light on how much (approximately) premium could be for a ninety year extension to my lease. Comparative homes in Bishopston with a long lease were worth £203,200. The mid-range amount of ground rent was £65 invoiced yearly. The lease terminated on 28 July 2087. Having 61 years unexpired we calculated the premium to the freeholder for the lease extension to be between £20,000 and £23,000 not including legals.