Bishopston leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Most owners of residential leasehold property in Bishopston enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Bishopston you really ought to investigate if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
Leasehold premises in Bishopston with in excess of one hundred years left 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 premises. In such circumstances there is often little to be gained by purchasing the reversionary interest 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. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| 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. |
| 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. |
Engaging our service gives you better control over the value of your Bishopston leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Henry was the the leasehold proprietor of a high value apartment in Bishopston being marketed with a lease of fraction over 72 years unexpired. Henry informally spoke with his landlord being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £125 per annum. Ordinarily, ground rent would not be payable on a lease extension were Henry to exercise his statutory right. Henry obtained expert legal guidance and secured satisfactory resolution without resorting to tribunal and ending up with a market value flat.
In 2010 we were called by Mr and Mrs. O Ali who, having was assigned a lease of a first floor apartment in Bishopston in May 2009. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year extension to my lease. Similar premises in Bishopston with a long lease were in the region of £270,000. The average amount of ground rent was £55 billed monthly. The lease expiry date was on 6 October 2101. Taking into account 75 years left we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of fees.
Ms T Walker owned a purpose-built apartment in Bishopston in March 2009. The dilemma was if we could approximate the premium would be to prolong the lease by 90 years. Comparative premises in Bishopston with a long lease were in the region of £168,800. The mid-range ground rent payable was £60 billed yearly. The lease elapsed on 15 January 2081. Considering the 55 years outstanding we calculated the premium to the freeholder to extend the lease to be between £30,400 and £35,200 exclusive of professional charges.