Bishopsworth leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. It is the case that most Bishopsworth tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Bishopsworth you really ought to see if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
Leasehold residencies in Bishopsworth with over one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Bishopsworth,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Bishopsworth valuers.
After unsuccessful negotiations with the landlord of her two bedroom flat in Bishopsworth, Lily commenced the lease extension process as the 80 year deadline was quickly approaching. The legal work was finalised in May 2014. The landlord’s fees were kept to an absolute minimum.
Ms Freya Cox purchased a basement apartment in Bishopsworth in June 2010. The dilemma was if we could approximate the premium would likely be to extend the lease by ninety years. Similar properties in Bishopsworth with 100 year plus lease were in the region of £227,800. The mid-range ground rent payable was £45 billed monthly. The lease ran out in 2091. Considering the 65 years as a residual term we estimated the premium to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of professional charges.
Mr and Mrs. Y Bonnet bought a newly refurbished flat in Bishopsworth in March 1998. We are asked if we could approximate the price would likely be to extend the lease by 90 years. Comparable homes in Bishopsworth with a long lease were in the region of £270,000. The average amount of ground rent was £55 collected per annum. The lease finished in 2102. Taking into account 76 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including expenses.