With a residential leasehold premises in Bishopsworth, you are actually purchasing a right to live in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may think about a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive particularly once there are fewer than eighty years remaining. Residents in Bishopsworth with a lease drawing near to 81 years remaining should seriously consider extending it sooner as opposed to later. Once the lease term has under 80 years left, under the relevant statute the freeholder can calculate and charge a greater premium, based on a technical multiplication, known as “marriage value” which is due.
It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Barnsley Building Society | |
| Chelsea Building Society | |
| Santander | |
| Skipton Building Society |
Regardless of whether you are a tenant or a landlord in Bishopsworth,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Bishopsworth valuers.
Harrison was the the leasehold owner of a conversion flat in Bishopsworth being marketed with a lease of fraction over fifty eight years unexpired. Harrison on an informal basis contacted his freeholder a well known local-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 per annum. No ground rent would be payable on a lease extension were Harrison to exercise his statutory right. Harrison obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and readily saleable.
Last May we were contacted by Mr and Mrs. W Lee , who moved into a garden flat in Bishopsworth in April 2009. The dilemma was if we could estimate the price could be for a 90 year lease extension. Comparable homes in Bishopsworth with an extended lease were valued around £260,000. The average ground rent payable was £50 billed monthly. The lease lapsed in 2099. Given that there were 73 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of costs.
In 2010 we were approached by Ms J Fournier who, having purchased a ground floor flat in Bishopsworth in July 2009. We are asked if we could shed any light on how much (approximately) premium could be to prolong the lease by 90 years. Comparative premises in Bishopsworth with 100 year plus lease were in the region of £264,000. The mid-range ground rent payable was £60 collected yearly. The lease ran out in 2079. Considering the 53 years remaining we estimated the premium to the landlord to extend the lease to be within £37,100 and £42,800 exclusive of legals.