The re-sale value of a leasehold property in Bishopsworth is impacted by how long the lease has remaining. If it is close to or fewer than eighty years you should foresee problems on re-sale, so it is recommended to arrange for a lease extension before buying. It is preferable to start the process of extending the lease is when the lease still has 82 years to run so that all matters can be finalised well before the 80 year threshold. Statute entitles Bishopsworth qualifying lessees to acquire a new lease which will be for the current unexpired lease term plus a supplemental term of 90 years. The intention of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Bishopsworth with in excess of one hundred 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 circumstances there is often little upside in buying the freehold 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with undertake 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 lawyer we work with provide it.
After lengthy discussions with the freeholder of her one bedroom apartment in Bishopsworth, Alisha initiated the lease extension process just as her lease was approaching the crucial 80-year deadline. The legal work completed in September 2014. The freeholder’s fees were kept to an absolute minimum.
Last Winter we were phoned by Mr and Mrs. M Fournier , who bought a newly refurbished apartment in Bishopsworth in September 1996. We are asked if we could shed any light on how much (roughly) price could be to prolong the lease by an additional years. Similar homes in Bishopsworth with an extended lease were in the region of £250,000. The mid-range amount of ground rent was £50 collected per annum. The lease finished on 17 March 2096. Given that there were 70 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including legals.
Dr T Bell took over the lease of a basement apartment in Bishopsworth in January 2010. The dilemma was if we could estimate the compensation to the landlord would likely be to prolong the lease by ninety years. Identical premises in Bishopsworth with an extended lease were worth £246,800. The average ground rent payable was £60 invoiced annually. The lease termination date was on 28 February 2076. Given that there were 50 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £44,700 and £51,600 exclusive of costs.