Chances are that if you own a flat in Bradley Stoke you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Lease extensions in Bradley Stoke can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Bradley Stoke lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Harry owned a studio flat in Bradley Stoke on the market with a lease of just over 59 years unexpired. Harry informally spoke with his landlord a well known London-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £125 annually. No ground rent would be due on a lease extension were Harry to invoke his statutory right. Harry obtained expert advice and secured satisfactory resolution informally and ending up with a market value flat.
In 2011 we were called by Mr and Mrs. E Jackson who, having bought a first floor flat in Bradley Stoke in July 1997. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparative properties in Bradley Stoke with a long lease were valued around £295,000. The average ground rent payable was £45 collected annually. The lease finished in 2100. Given that there were 75 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of professional charges.
In 2010 we were contacted by Dr Ollie Bonnet who, having completed a ground floor apartment in Bradley Stoke in September 2010. The question was if we could estimate the premium would be for a ninety year extension to my lease. Identical flats in Bradley Stoke with 100 year plus lease were in the region of £250,400. The mid-range ground rent payable was £65 collected monthly. The lease expiry date was on 5 March 2089. Taking into account 64 years unexpired we calculated the compensation to the landlord to extend the lease to be within £19,000 and £22,000 plus fees.