It’s a harsh certainty that a Filton residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Filton property market.Once your lease gets to 85ish years, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls lower than eighty years - otherwise a higher amount will be payable. Most flat owners in Filton will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm if you qualify for an extension. In some cases you may not qualify. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
Leasehold residencies in Filton with in excess of 100 years left on the lease are sometimes 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 purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barclays plc | |
| Coventry Building Society | |
| National Westminster Bank | |
| Santander |
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.
Harvey owned a high value apartment in Filton on the market with a lease of just over 59 years left. Harvey informally approached his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 annually. Ordinarily, ground rent would not be payable on a lease extension were Harvey to exercise his statutory right. Harvey obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and sell the property.
Ms E Davis purchased a one bedroom flat in Filton in July 2005. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Identical flats in Filton with 100 year plus lease were worth £227,800. The average amount of ground rent was £45 invoiced monthly. The lease came to a finish on 27 August 2091. Given that there were 65 years left we estimated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of fees.
Last September we were e-mailed by Dr J Fournier , who was assigned a lease of a recently refurbished apartment in Filton in February 2012. We are asked if we could estimate the price could be to extend the lease by a further 90 years. Identical homes in Filton with a long lease were worth £275,000. The mid-range ground rent payable was £55 collected annually. The lease ended on 11 August 2102. Given that there were 76 years remaining we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus expenses.