The only way is down when it comes to Bishops Castle lease terms. Bishops Castle flats that have a lease term lower than eighty years will de-escalate in market price at a rapid rate, and the cost to extend your lease will rise.
Leasehold premises in Bishops Castle 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 home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Bishops Castle,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Bishops Castle valuers.
In the wake of 9 months of unsuccessful negotiations with the landlord of her purpose-built flat in Bishops Castle, Lucy started the lease extension process as the eighty year mark was swiftly coming. The legal work completed in October 2008. The landlord’s charges were restricted to approximately 450 GBP.
Last Summer we were called by Mr and Mrs. H Reed , who owned a purpose-built apartment in Bishops Castle in May 2005. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year extension to my lease. Identical properties in Bishops Castle with 100 year plus lease were valued about £300,000. The mid-range ground rent payable was £50 billed monthly. The lease concluded on 22 April 2100. Considering the 75 years outstanding we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus expenses.
Dr Edward Hall bought a one bedroom flat in Bishops Castle in September 2000. The question was if we could estimate the premium would be for a ninety year extension to my lease. Comparable residencies in Bishops Castle with a long lease were worth £250,400. The average amount of ground rent was £65 collected quarterly. The lease lapsed in 2089. Considering the 64 years remaining we calculated the compensation to the freeholder for the lease extension to be between £19,000 and £22,000 not including expenses.