Unfortunately that a Bishopsworth residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Bishopsworth property market.Where your lease has approximately 90 years left, you should start considering a lease extension. If the number of years remaining slips below eighty years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most flat owners in Bishopsworth will be able to extend under the legislation; however a lawyer will be able to confirm whether you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the process.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide you increased control over the value of your Bishopsworth leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following lengthy negotiations with the freeholder of her two bedroom flat in Bishopsworth, Katherine started the lease extension process just as the lease was approaching the crucial 80-year deadline. The legal work was concluded in April 2010. The landlord’s costs were negotiated to under 500 GBP.
Mrs Victoria Taylor purchased a garden apartment in Bishopsworth in September 2012. The dilemma was if we could approximate the compensation to the landlord would be to extend the lease by a further 90 years. Identical homes in Bishopsworth with an extended lease were valued around £285,000. The mid-range amount of ground rent was £55 invoiced monthly. The lease came to a finish on 12 January 2104. Given that there were 79 years remaining we calculated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 not including costs.
In 2009 we were contacted by Dr Sian Mitchell who, having took over the lease of a studio flat in Bishopsworth in April 2009. The question was if we could estimate the price would be to extend the lease by an additional years. Similar premises in Bishopsworth with 100 year plus lease were in the region of £193,400. The mid-range amount of ground rent was £65 billed every twelve months. The lease terminated on 19 September 2084. Given that there were 59 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £21,900 and £25,200 exclusive of costs.