Bedminster leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. It is the case that most Bedminster tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Bedminster you really ought to see if your lease has between 70 and ninety years remaining. There are compelling reasons why a Bedminster flat owner with a lease having around 80 years left should take action to ensure that a lease extension is put in place without delay
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Bedminster,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Bedminster valuers.
Kai was the the leasehold proprietor of a 2 bedroom apartment in Bedminster being marketed with a lease of a little over 59 years outstanding. Kai informally contacted his freeholder a well known Bristol-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 yearly. Ordinarily, ground rent would not be due on a lease extension were Kai to exercise his statutory right. Kai obtained expert advice and secured satisfactory resolution informally and readily saleable.
Last Christmas we were called by Mrs K King , who purchased a garden flat in Bedminster in February 2011. We are asked if we could approximate the premium would likely be for a ninety year extension to my lease. Identical homes in Bedminster with 100 year plus lease were worth £250,400. The average amount of ground rent was £65 billed yearly. The lease came to a finish on 21 August 2090. Considering the 64 years remaining we approximated the premium to the landlord to extend the lease to be between £19,000 and £22,000 exclusive of fees.
Mr and Mrs. D White acquired a studio flat in Bedminster in July 2001. The dilemma was if we could approximate the price would be to extend the lease by a further 90 years. Comparable residencies in Bedminster with 100 year plus lease were in the region of £189,000. The mid-range ground rent payable was £55 billed every twelve months. The lease elapsed in 2079. Having 53 years remaining we calculated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 plus expenses.