Unfortunately that a Bishopsworth residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Bishopsworth property market.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under 80 years - otherwise a higher premium will be payable. The majority of flat owners in Bishopsworth will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you qualify for an extension. In some situations you may not be entitled. There are also strict timetables and procedures to be adhered to once the process is instigated and you will need to be guided by your lawyer for the duration of the process.
Leasehold premises in Bishopsworth with in excess of 100 years unexpired on the lease are often 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 purchasing the reversionary interest unless savings on ground rent and maintenance 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. |
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Using our service will provide you better 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 want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Henry owned a studio apartment in Bishopsworth being marketed with a lease of fraction over sixty years left. Henry on an informal basis contacted his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 annually. Ordinarily, ground rent would not be payable on a lease extension were Henry to exercise his statutory right. Henry obtained expert advice and secured an acceptable deal without going to tribunal and readily saleable.
Mrs O Moreau took over the lease of a studio flat in Bishopsworth in February 2005. We are asked if we could estimate the price would likely be to extend the lease by an additional years. Similar homes in Bishopsworth with a long lease were in the region of £218,000. The average ground rent payable was £45 invoiced annually. The lease lapsed on 2 July 2089. Considering the 63 years outstanding we calculated the premium to the landlord to extend the lease to be within £17,100 and £19,800 plus expenses.
In 2011 we were approached by Ms Samantha Rivera who, having owned a newly refurbished flat in Bishopsworth in June 2006. The question was if we could approximate the price could be to prolong the lease by 90 years. Comparative residencies in Bishopsworth with a long lease were in the region of £265,000. The mid-range amount of ground rent was £50 billed quarterly. The lease elapsed on 10 May 2100. Considering the 74 years remaining we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including professional charges.