Owning a apartment usually means owning a lease of the property, which has a set term of years. The lease will ordinarily be granted for a prescribed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Bishopsworth. Clearly, the term of lease left shortens as time goes by. This is often ignored and only becomes a problem when the residence has to be disposed of or re-mortgaged. The shorter the lease the less it is worth and the more expensive it will be to obtain a lease extension. Eligible leaseholders in Bishopsworth have the legal entitlement to extend the lease for an additional 90 years under legislation. You should give careful attention before delaying your Bishopsworth lease extension. Holding off that expense now only increases the price you will eventually have to pay to extend your lease
Leasehold residencies 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 premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate 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. |
| Coventry Building Society | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with procure Bishopsworth lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Harrison was the the leasehold proprietor of a studio flat in Bishopsworth being sold with a lease of fraction over 72 years left. Harrison on an informal basis contacted his freeholder being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £100 yearly. Ordinarily, ground rent would not be payable on a lease extension were Harrison to invoke his statutory right. Harrison obtained expert advice and was able to make an informed judgement and handle with the matter and sell the property.
Last Summer we were e-mailed by Mr M Moreau , who completed a one bedroom flat in Bishopsworth in October 2010. The question was if we could estimate the price could be for a 90 year extension to my lease. Identical properties in Bishopsworth with a long lease were worth £254,200. The mid-range amount of ground rent was £60 invoiced yearly. The lease finished in 2077. Given that there were 51 years remaining we estimated the compensation to the freeholder to extend the lease to be within £43,700 and £50,600 not including expenses.
In 2011 we were phoned by Dr U Baker who, having purchased a one bedroom apartment in Bishopsworth in April 2008. The question was if we could approximate the price would likely be to prolong the lease by 90 years. Comparable flats in Bishopsworth with a long lease were in the region of £210,600. The mid-range ground rent payable was £45 invoiced quarterly. The lease terminated on 8 January 2088. Given that there were 62 years left we approximated the compensation to the landlord for the lease extension to be within £18,100 and £20,800 not including costs.