It’s an underpublicised certainty that a Bishopston residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Bishopston property prices.Once your lease nears 85ish years, you should 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 falls under 80 years - otherwise a higher amount will be due. The majority of flat owners in Bishopston will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you are eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your lawyer throughout the process.
Leasehold premises in Bishopston with in excess of 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 conveyancing solicitor and surveyor with experience in this area.
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 a wealth of experience 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.
Leon was the the leasehold proprietor of a studio flat in Bishopston being marketed with a lease of a few days over 59 years remaining. Leon informally spoke with his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Leon to exercise his statutory right. Leon procured expert legal guidance and was able to make an informed decision and deal with the matter and readily saleable.
In 2014 we were contacted by Mr Tommy Hill who, having owned a first floor flat in Bishopston in June 1996. The dilemma was if we could shed any light on how much (roughly) price would be for a 90 year extension to my lease. Comparative flats in Bishopston with an extended lease were in the region of £285,000. The mid-range amount of ground rent was £55 invoiced quarterly. The lease ended in 2105. Given that there were 79 years remaining we estimated the premium to the landlord for the lease extension to be within £13,300 and £15,400 plus costs.
In 2012 we were phoned by Mr and Mrs. E Lefebvre who, having took over the lease of a newly refurbished apartment in Bishopston in March 1997. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by 90 years. Comparable residencies in Bishopston with an extended lease were worth £193,400. The average ground rent payable was £65 invoiced every twelve months. The lease finished in 2085. Taking into account 59 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £21,900 and £25,200 plus expenses.