Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will usually be granted for a prescribed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Bradley Stoke. Inevitably, the period 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 refinanced. The shorter the lease the lower the value of the property and the more it will cost to obtain a lease extension. Eligible leaseholders in Bradley Stoke have the legal entitlement to extend the lease for a further 90 years under Leasehold Reform legislation. You should give due attention before delaying your Bradley Stoke lease extension. Holding off that expense now likely increases the price you will ultimately incur for a lease extension
Leasehold premises in Bradley Stoke with over one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| 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; |
| 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. |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service gives you better control over the value of your Bradley Stoke leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Elijah was the the leasehold proprietor of a conversion apartment in Bradley Stoke being marketed with a lease of a few days over 59 years left. Elijah on an informal basis contacted his landlord a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £200 annually. No ground rent would be payable on a lease extension were Elijah to exercise his statutory right. Elijah procured expert advice and was able to make an informed decision and deal with the matter and sell the property.
In 2009 we were approached by Dr V Rivera who, having owned a one bedroom apartment in Bradley Stoke in May 2012. We are asked if we could estimate the premium could be for a 90 year extension to my lease. Comparative residencies in Bradley Stoke with an extended lease were in the region of £201,200. The average ground rent payable was £55 billed yearly. The lease finished on 1 August 2081. Considering the 56 years remaining we approximated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 not including costs.
In 2014 we were e-mailed by Ms V Cooper who, having was assigned a lease of a purpose-built apartment in Bradley Stoke in May 2008. The question was if we could approximate the premium would likely be for a 90 year lease extension. Identical flats in Bradley Stoke with a long lease were worth £300,000. The mid-range ground rent payable was £50 collected monthly. The lease expired on 1 March 2101. Given that there were 76 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 not including fees.