On the balance of probabilities where you own a flat in Bedminster you actually own a long leasehold interest over your property
Leasehold residencies in Bedminster with in excess of 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with undertake Bedminster 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 conveyancing solicitor we work with provide it.
Tommy owned a conversion flat in Bedminster being marketed with a lease of just over 59 years left. Tommy on an informal basis contacted his landlord being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £125 per annum. Ordinarily, ground rent would not be due on a lease extension were Tommy to invoke his statutory right. Tommy obtained expert legal guidance and secured an acceptable deal without resorting to tribunal and ending up with a market value flat.
Mr and Mrs. B Bonnet was assigned a lease of a garden flat in Bedminster in June 2008. We are asked if we could approximate the price would likely be for a 90 year lease extension. Identical residencies in Bedminster with 100 year plus lease were valued around £208,600. The average ground rent payable was £60 collected every twelve months. The lease came to a finish on 4 January 2083. Having 57 years outstanding we approximated the premium to the landlord to extend the lease to be within £30,400 and £35,200 not including legals.
In 2014 we were phoned by Dr D Watson who, having completed a basement flat in Bedminster in May 1997. We are asked if we could shed any light on how much (roughly) price could be for a ninety year lease extension. Identical properties in Bedminster with 100 year plus lease were valued about £200,000. The mid-range amount of ground rent was £50 collected quarterly. The lease expired in 2103. Taking into account 77 years unexpired we approximated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of fees.