Bishopsworth leases on domestic properties are gradually losing value. Where your lease has about 90 years remaining, you should start thinking about a lease extension. If lease term falls under 80 years, you will then have to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Bishopsworth will mostly qualify for a lease extension; however It would be wise to check with a conveyancer to confirm if you qualify. In some circumstances you may not qualify. There are prescribed deadlines and steps to comply with once the process has commenced so it’s best to be guided by a lawyer during the process.
It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the property will be equivalent in value to a freehold for decades to come.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service will provide you enhanced control over the value of your Bishopsworth leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
After protracted negotiations with the freeholder of her leasehold flat in Bishopsworth, Rachel initiated the lease extension process just as her lease was nearing the all-important 80-year mark. The lease extension was concluded in April 2006. The freeholder’s costs were kept to an absolute minimum.
Mr and Mrs. W Smith was assigned a lease of a first floor apartment in Bishopsworth in July 2002. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year extension to my lease. Comparative flats in Bishopsworth with a long lease were worth £256,600. The average amount of ground rent was £60 billed yearly. The lease concluded on 21 January 2077. Considering the 52 years outstanding we calculated the premium to the freeholder to extend the lease to be between £39,000 and £45,000 not including expenses.
Mr Nathan Martin acquired a first floor apartment in Bishopsworth in January 1997. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Comparable properties in Bishopsworth with 100 year plus lease were in the region of £218,000. The average ground rent payable was £45 billed quarterly. The lease came to a finish in 2088. Given that there were 63 years as a residual term we approximated the premium to the landlord to extend the lease to be within £17,100 and £19,800 plus legals.