The closer a residential lease in Filton gets to zero years unexpired, the more it reduces the value of the property. If the residual term has, more than one hundred years to run then this decrease may be fractional that being said there will become a point in time when a lease has under than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should extend the lease without delay. The majority of flat owners in Filton will meet the qualifying criteria; however a conveyancing solicitor can advise if you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold properties in Filton with in excess of 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value 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 service charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with undertake Filton 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.
Trailing protracted correspondence with the freeholder of her studio apartment in Filton, Emily initiated the lease extension process as the 80 year threshold was fast coming. The transaction was concluded in May 2014. The landlord’s costs were kept to an absolute minimum.
Mr and Mrs. H Rivera completed a studio apartment in Filton in September 2009. The question was if we could shed any light on how much (approximately) premium would likely be to extend the lease by 90 years. Similar properties in Filton with an extended lease were valued around £290,000. The mid-range amount of ground rent was £60 collected yearly. The lease termination date was in 2106. Considering the 80 years unexpired we calculated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 not including costs.
Last Autumn we were phoned by Dr Sophia Jackson , who owned a ground floor apartment in Filton in February 2009. The dilemma was if we could shed any light on how much (roughly) price would be for a 90 year extension to my lease. Comparative properties in Filton with a long lease were in the region of £200,800. The mid-range ground rent payable was £65 invoiced every twelve months. The lease elapsed on 13 May 2086. Given that there were 60 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £20,900 and £24,200 plus expenses.