Unfortunately 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.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. If lease term drops under eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most flat owners in Bishopston will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you qualify for an extension. 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 conveyancer for the duration of the process.
Leasehold premises in Bishopston with in excess of 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit it.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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 obtain guidance from a conveyancer and surveyor 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 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.
Trailing unsuccessful negotiations with the landlord of her ground floor apartment in Bishopston, Isabella commenced the lease extension process as the 80 year mark was fast advancing. The transaction completed in November 2006. The freeholder’s charges were negotiated to approximately 550 pounds.
Mr and Mrs. G Thomas acquired a garden apartment in Bishopston in May 2003. We are asked if we could estimate the price would be to prolong the lease by 90 years. Identical premises in Bishopston with a long lease were valued around £200,800. The mid-range ground rent payable was £65 invoiced annually. The lease ended in 2086. Given that there were 60 years outstanding we approximated the compensation to the landlord for the lease extension to be between £20,900 and £24,200 exclusive of expenses.
Mr and Mrs. N Anderson bought a one bedroom apartment in Bishopston in April 1995. We are asked if we could shed any light on how much (approximately) premium would likely be to extend the lease by a further 90 years. Comparative premises in Bishopston with an extended lease were valued about £255,000. The mid-range ground rent payable was £50 billed annually. The lease elapsed in 2097. Given that there were 71 years left we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus costs.