As the the remaining lease term of a Avonmouth domestic lease decreases so does its value and therefore the value of your property. If the lease has, over one hundred years remaining then this decrease may be fractional nevertheless there will become a point in time when a lease has less than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease without delay. Most flat owners in Avonmouth will meet the qualifying criteria; that being said a conveyancer can advise if you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold properties in Avonmouth with more than one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Avonmouth,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Avonmouth valuers.
Matthew was the the leasehold proprietor of a 2 bedroom flat in Avonmouth on the market with a lease of just over sixty years unexpired. Matthew 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 a new rent initially set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Matthew to invoke his statutory right. Matthew obtained expert advice and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
In 2009 we were contacted by Mr and Mrs. V López who, having took over the lease of a basement apartment in Avonmouth in March 2010. The question was if we could estimate the compensation to the landlord would be for a ninety year lease extension. Identical flats in Avonmouth with a long lease were in the region of £265,000. The average ground rent payable was £50 invoiced yearly. The lease came to a finish in 2099. Having 73 years left we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including professional charges.
Last Spring we were e-mailed by Mr and Mrs. V Davis , who completed a ground floor flat in Avonmouth in August 2000. The dilemma was if we could estimate the compensation to the landlord would likely be to prolong the lease by ninety years. Comparative properties in Avonmouth with a long lease were in the region of £264,000. The mid-range amount of ground rent was £60 billed annually. The lease ended in 2079. Taking into account 53 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £37,100 and £42,800 exclusive of fees.