Owning a apartment usually means owning a lease of the property, which has a set term of years. This 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 Filton. Inevitably, the period of lease remaining shortens as time goes by. This is often overlooked and only becomes a problem when the property has to be sold or re-mortgaged. The fewer the years remaining the less it is worth and the more expensive it will be to procure a lease extension. Qualifying long lease owners in Filton have the right to extend the lease for an additional ninety years under the 1993 Leasehold Reform Act. You should give careful deliberation before putting off your Filton lease extension. Holding off that expense now likely increases the price you will ultimately have to pay for a lease extension
Leasehold premises in Filton with in excess of 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. 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 |
|---|---|
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you increased control over the value of your Filton leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Kian, came perilously close to the 80-year threshold with the lease on his basement flat in Filton. In buying his property two decades ago, the lease term was of little bearing. Luckily, it dawned on him that he would imminently be paying way over the odds for a lease extension. Kian arranged for a lease extension at the eleventh hour last August. Kian and the freeholder ultimately settled on the final figure of £5,500 . If he not met the deadline, the amount would have escalated by a minimum £925.
In 2013 we were called by Mr and Mrs. S Davis who, having purchased a one bedroom apartment in Filton in August 2001. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Identical premises in Filton with 100 year plus lease were worth £261,600. The mid-range amount of ground rent was £60 billed every twelve months. The lease expired on 10 July 2077. Given that there were 52 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £39,000 and £45,000 not including legals.
Mr and Mrs. E Vincent moved into a one bedroom apartment in Filton in July 2010. The question was if we could approximate the premium would likely be to extend the lease by 90 years. Similar residencies in Filton with an extended lease were in the region of £218,000. The mid-range amount of ground rent was £45 billed per annum. The lease expired on 25 October 2088. Given that there were 63 years remaining we approximated the premium to the freeholder for the lease extension to be within £17,100 and £19,800 not including legals.