Bishopston residential property held on a long lease is a wasting asset because a leaseholder only owns the property for a period of years.
Leasehold residencies in Bishopston with in excess of 100 years unexpired on the lease are often regarded as a ‘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 to be gained by buying the freehold unless savings on ground rent and maintenance charges justify 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. |
| Chelsea 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. |
| Halifax | 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Bishopston,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Bishopston valuers.
Trailing protracted correspondence with the freeholder of her ground floor apartment in Bishopston, Charlotte started the lease extension process just as her lease was approaching the crucial eighty-year deadline. The legal work was concluded in March 2007. The landlord’s fees were negotiated to a tad over 550 pounds.
In 2011 we were approached by Mr and Mrs. Y Brown who, having completed a basement flat in Bishopston in May 2000. The dilemma was if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Similar properties in Bishopston with a long lease were in the region of £265,000. The average ground rent payable was £50 collected monthly. The lease elapsed in 2099. Considering the 74 years remaining we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including fees.
Last month we were phoned by Dr Tyler Torres , who owned a first floor flat in Bishopston in February 2006. The dilemma was if we could estimate the premium would likely be for a ninety year lease extension. Comparable properties in Bishopston with an extended lease were valued about £166,400. The average ground rent payable was £60 billed every twelve months. The lease finished on 3 September 2079. Taking into account 54 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £32,300 and £37,400 plus professional charges.