For anyone whose Bedminster home is held on a long lease, the message is clear – if nothing is done, the property will ultimately revert to the freeholder, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease.
Leasehold premises in Bedminster with over 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Lease extensions in Bedminster can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Bedminster lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of unsuccessful discussions with the freeholder of her purpose-built apartment in Bedminster, Anna initiated the lease extension process as the 80 year threshold was quickly nearing. The lease extension was concluded in November 2007. The landlord’s costs were restricted to a tad over six hundred GBP.
Last Autumn we were approach by Dr Alisha Ali , who took over the lease of a basement apartment in Bedminster in November 2004. We are asked if we could estimate the price could be for a ninety year extension to my lease. Comparative homes in Bedminster with 100 year plus lease were in the region of £295,000. The average ground rent payable was £45 invoiced annually. The lease end date was on 18 September 2099. Having 74 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 plus fees.
Dr C Brown took over the lease of a first floor flat in Bedminster in March 2004. The question was if we could approximate the price could be to extend the lease by ninety years. Comparative premises in Bedminster with a long lease were in the region of £243,000. The average amount of ground rent was £65 invoiced yearly. The lease ran out on 3 September 2088. Having 63 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £20,000 and £23,000 exclusive of professional charges.