Bishopsworth residential property owned on a long lease is a depreciating asset because a leaseholder merely owns the property for a period of years.
It is generally accepted that a residential leasehold with more than one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Engaging our service will provide you better control over the value of your Bishopsworth leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Harry, came very close to the 80-year threshold with the lease on his two bedroom flat in Bishopsworth. Having bought his flat 18 years previously, the lease term was of little significance. Fortunately, he became aware that he would soon be paying way over the odds for Extending the lease. Harry arranged for a lease extension just under the wire last March. Harry and the landlord subsequently agreed on sum of £5,000 . If the lease had slid to less than eighty years, the figure would have escalated by a minimum £975.
Last Autumn we were e-mailed by Ms T Allen , who moved into a newly refurbished apartment in Bishopsworth in October 1998. The dilemma was if we could estimate the premium could be to extend the lease by an additional years. Identical properties in Bishopsworth with an extended lease were worth £220,400. The average ground rent payable was £45 collected yearly. The lease came to a finish in 2089. Given that there were 64 years remaining we estimated the compensation to the freeholder for the lease extension to be within £16,200 and £18,600 plus expenses.
Last Summer we were contacted by Mr and Mrs. E Williams , who took over the lease of a garden apartment in Bishopsworth in April 2012. The dilemma was if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Comparative premises in Bishopsworth with 100 year plus lease were valued about £270,000. The average ground rent payable was £55 billed yearly. The lease ended in 2100. Taking into account 75 years outstanding we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of expenses.