Filton leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. It is the case that most Filton tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Filton you really ought to check if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension sharply increases as part of the premium you pay is what is known as a marriage value
Leasehold premises in Filton with over 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Lease extensions in Filton can be a difficult process. We recommend you get guidance from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
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 procuring Filton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Lewis owned a high value flat in Filton on the market with a lease of a little over 59 years unexpired. Lewis on an informal basis approached his landlord a well known London-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Lewis to exercise his statutory right. Lewis procured expert legal guidance and secured an acceptable deal without resorting to tribunal and ending up with a market value flat.
Last Winter we were contacted by Mr O Wood , who purchased a ground floor apartment in Filton in November 2011. The question was if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by ninety years. Comparable flats in Filton with 100 year plus lease were worth £254,200. The mid-range amount of ground rent was £60 collected annually. The lease elapsed in 2077. Taking into account 51 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £43,700 and £50,600 plus fees.
Last Christmas we were called by Ms Sarah Martínez , who owned a garden apartment in Filton in October 2004. The question was if we could shed any light on how much (approximately) price would likely be for a ninety year extension to my lease. Identical flats in Filton with an extended lease were valued about £210,600. The mid-range amount of ground rent was £45 collected quarterly. The lease elapsed on 27 May 2088. Taking into account 62 years outstanding we calculated the compensation to the landlord to extend the lease to be within £18,100 and £20,800 not including professional charges.