The value of Filton leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase significantly once the remaining term is below than eighty years
Leasehold properties in Filton with more than 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers 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 conveyancer we work with provide it.
Zachary owned a high value flat in Filton being sold with a lease of a few days over sixty years unexpired. Zachary on an informal basis contacted his landlord a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £125 yearly. No ground rent would be due on a lease extension were Zachary to exercise his statutory right. Zachary procured expert legal guidance and secured an acceptable deal without going to tribunal and ending up with a market value flat.
In 2010 we were phoned by Mr and Mrs. I Lambert who, having took over the lease of a one bedroom flat in Filton in January 2011. We are asked if we could shed any light on how much (roughly) price would be to prolong the lease by a further 90 years. Comparative flats in Filton with a long lease were in the region of £255,000. The average ground rent payable was £50 collected annually. The lease lapsed on 14 September 2096. Considering the 70 years left we calculated the compensation to the freeholder for the lease extension to be between £10,500 and £12,000 exclusive of professional charges.
Dr Finley Harris purchased a newly refurbished flat in Filton in May 2006. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by ninety years. Comparable properties in Filton with 100 year plus lease were worth £246,800. The average amount of ground rent was £60 invoiced annually. The lease lapsed on 24 April 2076. Given that there were 50 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £44,700 and £51,600 not including fees.