It’s an underpublicised certainty that a Bishopsworth residential lease is a wasting asset. The lease value reduces in proportion to its lease length. 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.Once your lease gets to 85ish years, you should 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 dips lower than 80 years - otherwise a higher premium will be payable. Most leasehold owners in Bishopsworth will be able to extend under the legislation; however a conveyancer will be able to confirm whether you are eligibility. In some situations you may not be entitled. There are also strict timeframes 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 formalities.
Leasehold residencies in Bishopsworth with in excess of 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| 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. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Bishopsworth,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Bishopsworth valuers.
Subsequent to protracted discussions with the freeholder of her studio apartment in Bishopsworth, Danielle started the lease extension process as the 80 year deadline was swiftly approaching. The lease extension was concluded in April 2009. The freeholder’s charges were kept to an absolute minimum.
In 2013 we were phoned by Mr Nathaniel Hall who, having owned a first floor flat in Bishopsworth in May 2012. The question was if we could approximate the compensation to the landlord would be to prolong the lease by an additional years. Similar properties in Bishopsworth with an extended lease were in the region of £275,000. The average ground rent payable was £55 collected annually. The lease finished on 16 August 2101. Taking into account 76 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including fees.
In 2014 we were phoned by Mrs Victoria Young who, having bought a studio apartment in Bishopsworth in September 2010. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by an additional years. Identical flats in Bishopsworth with an extended lease were worth £176,200. The mid-range ground rent payable was £65 collected every twelve months. The lease finished in 2081. Considering the 56 years outstanding we estimated the premium to the freeholder for the lease extension to be between £29,500 and £34,000 exclusive of costs.