It’s an underpublicised certainty that a Bishopsworth residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Bishopsworth property market.Where your lease has approximately ninety years left, you should start thinking about a lease extension. If lease term falls below eighty years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most leasehold owners in Bishopsworth will be able to extend under the legislation; however a lawyer will be able to clarify if you qualify for an extension. In some cases you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer throughout the process.
Leasehold residencies in Bishopsworth with over 100 years remaining on the lease are sometimes 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 service charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Bishopsworth can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and valuer 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 Bishopsworth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
18 months ago Daniel, started to get near to the 80-year mark with the lease on his two bedroom flat in Bishopsworth. Having purchased his home two decades ago, the length of the lease was of minimal concern. Fortunately, he noticed he would imminently be paying an inflated amount for a lease extension. Daniel extended the lease just ahead of time in April. Daniel and the landlord who owned the flat above in the end agreed on an amount of £5,000 . If he failed to meet the deadline, the figure would have increased by at least £1,125.
Mr H Taylor completed a one bedroom apartment in Bishopsworth in October 2009. We are asked if we could estimate the premium would likely be to prolong the lease by an additional years. Similar premises in Bishopsworth with an extended lease were valued about £183,600. The mid-range amount of ground rent was £65 collected every twelve months. The lease expiry date was on 11 October 2081. Having 57 years outstanding we calculated the premium to the landlord to extend the lease to be within £28,500 and £33,000 plus professional charges.
Mr Ethan Leroy owned a one bedroom flat in Bishopsworth in July 2011. The question was if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year extension to my lease. Comparative flats in Bishopsworth with 100 year plus lease were in the region of £245,000. The mid-range ground rent payable was £50 collected annually. The lease came to a finish on 10 October 2092. Having 68 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of legals.