The nearer a domestic lease in Bishops Castle gets to zero years unexpired, the the greater the reduction in the value of the property. If the lease has, over 100 years to run then this decrease may be negligible nevertheless there will become a point in time when a lease has under than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main reason why you should extend the lease sooner rather than later. Most flat owners in Bishops Castle will meet the qualifying criteria; however a conveyancing solicitor should be able to confirm if you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is generally accepted that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| 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. |
| Godiva Mortgages | 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. |
| Halifax | 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. |
| 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. |
Engaging our service gives you better control over the value of your Bishops Castle leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Dylan owned a conversion apartment in Bishops Castle being marketed with a lease of a little over fifty eight years outstanding. Dylan informally contacted his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £125 annually. Ordinarily, ground rent would not be due on a lease extension were Dylan to invoke his statutory right. Dylan procured expert advice and was able to make an informed judgement and handle with the matter and sell the property.
Last August we were e-mailed by Mr Andrew Campbell , who moved into a studio flat in Bishops Castle in September 1997. The question was if we could approximate the premium could be for a 90 year extension to my lease. Comparable flats in Bishops Castle with 100 year plus lease were in the region of £225,800. The mid-range amount of ground rent was £60 invoiced annually. The lease expired on 23 August 2086. Taking into account 60 years remaining we calculated the compensation to the landlord to extend the lease to be within £24,700 and £28,600 plus legals.
Last Spring we were e-mailed by Dr W Baker , who was assigned a lease of a first floor apartment in Bishops Castle in January 2004. The question was if we could estimate the price would be for a ninety year extension to my lease. Comparative properties in Bishops Castle with 100 year plus lease were in the region of £210,000. The mid-range ground rent payable was £50 collected every twelve months. The lease finished in 2106. Having 80 years left we calculated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 plus professional charges.