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 reduction being disguised by increases in the Filton property market.Where your lease has approximately ninety years left, you need to start considering 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 slips below 80 years - otherwise a higher amount will be payable. Most flat owners in Filton will be able to extend under the legislation; however a lawyer should be able to confirm whether you are eligibility. In some situations you may not be entitled. There are also strict deadlines and procedures to follow once the process is instigated and you will need to be guided by your conveyancer for the duration of the process.
It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the property will be worth the same as a freehold for many years in the future.
| 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. |
| 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. |
| Coventry Building Society | 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Engaging our service will provide you better control over the value of your Filton leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Kyle, started to get near to the eighty-year threshold with the lease on his garden flat in Filton. Having purchased his property 19 years previously, the unexpired term was of minimal interest. Thankfully, he recognised he would soon be paying an escalated premium for a lease extension. Kyle extended the lease just under the wire in August. Kyle and the freeholder via the management company eventually settled on sum of £6,000 . If he not met the deadline, the amount would have gone up by a minimum £1,025.
Last Christmas we were phoned by Mr Finley François , who completed a purpose-built apartment in Filton in January 2011. The dilemma was if we could approximate the premium would likely be to prolong the lease by an additional years. Comparative properties in Filton with an extended lease were valued around £264,000. The average ground rent payable was £60 billed quarterly. The lease came to a finish in 2078. Having 53 years left we approximated the compensation to the freeholder for the lease extension to be between £37,100 and £42,800 exclusive of professional charges.
In 2013 we were called by Mrs Sian Girard who, having purchased a newly refurbished apartment in Filton in May 1999. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year extension to my lease. Identical homes in Filton with an extended lease were valued about £225,400. The mid-range ground rent payable was £45 billed annually. The lease ran out in 2089. Considering the 64 years left we approximated the premium to the landlord for the lease extension to be within £15,200 and £17,600 plus legals.