Bishopsworth leases on residential properties are gradually decreasing 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. Most owners of residential leasehold property in Bishopsworth enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Bishopsworth you should check if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service gives you enhanced control over the value of your Bishopsworth leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to protracted correspondence with the landlord of her two bedroom apartment in Bishopsworth, Chloe commenced the lease extension process just as the lease was nearing the crucial eighty-year deadline. The transaction was finalised in February 2014. The landlord’s fees were restricted to less than 550 GBP.
Dr Holly Thomas purchased a purpose-built flat in Bishopsworth in January 2003. The dilemma was if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Identical properties in Bishopsworth with a long lease were in the region of £235,200. The average amount of ground rent was £45 billed monthly. The lease finished on 27 November 2092. Given that there were 66 years remaining we calculated the premium to the landlord to extend the lease to be within £12,400 and £14,200 not including fees.
In 2009 we were called by Dr Seth Lee who, having completed a basement apartment in Bishopsworth in May 2005. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by 90 years. Identical premises in Bishopsworth with an extended lease were valued about £275,000. The mid-range amount of ground rent was £55 collected quarterly. The lease concluded in 2103. Taking into account 77 years remaining we approximated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of costs.