Filton leases on domestic deteriorating in value. Where your lease has about 90 years left, you should start thinking about a lease extension. If lease term falls under 80 years, you will then have to pay 50% of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Filton will usually qualify for a lease extension; however a solicitor should be able confirm if you qualify. In some circumstances you may not qualify. There are prescribed deadlines and steps to comply with once the process is triggered so it’s best to be guided by a lawyer during the process.
Leasehold properties in Filton with over 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 buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
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 lawyer we work with provide it.
Tommy was the the leasehold owner of a high value apartment in Filton on the market with a lease of a few days over 61 years outstanding. Tommy on an informal basis contacted his landlord being a well known local-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Tommy to exercise his statutory right. Tommy procured expert legal guidance and secured an acceptable resolution without going to tribunal and sell the flat.
Last Winter we were e-mailed by Dr T Sánchez , who was assigned a lease of a one bedroom apartment in Filton in November 2003. We are asked if we could shed any light on how much (roughly) premium could be for a ninety year lease extension. Similar residencies in Filton with a long lease were worth £260,000. The mid-range ground rent payable was £50 billed monthly. The lease ended in 2098. Considering the 72 years as a residual term we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including fees.
Dr Y Morris owned a first floor apartment in Filton in March 1998. We are asked if we could shed any light on how much (approximately) premium could be for a 90 year lease extension. Identical premises in Filton with an extended lease were worth £261,600. The average ground rent payable was £60 invoiced annually. The lease expired in 2078. Taking into account 52 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £39,000 and £45,000 exclusive of costs.