There is no doubt about it a leasehold flat or house in Bishops Castle is a wasting asset as a result of the diminishing lease term. Where the residual term has, in excess of 125 years remaining then this decrease may be fractional that being said there will become a point in time when a lease has under than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease without delay. The majority of flat owners in Bishops Castle will meet the qualifying criteria; that being said a conveyancing solicitor can confirm whether you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years left, the premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Bishops Castle,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Bishops Castle valuers.
Last year Kai, started to get close to the 80-year mark with the lease on his purpose- built apartment in Bishops Castle. Having bought his property two decades ago, the lease term was of little importance. by good luck, he recognised he would imminently be paying way over the odds for a lease extension. Kai was able to extend his lease at the eleventh hour last January. Kai and the landlord who owned the flat above subsequently settled on an amount of £5,000 . If he had missed the deadline, the sum would have gone up by at least £875.
Last Winter we were approach by Dr D Green , who moved into a basement apartment in Bishops Castle in September 2002. The dilemma was if we could estimate the premium could be to extend the lease by 90 years. Identical flats in Bishops Castle with an extended lease were worth £280,000. The average ground rent payable was £45 collected quarterly. The lease finished in 2095. Having 70 years remaining we calculated the premium to the landlord to extend the lease to be within £12,400 and £14,200 plus fees.
In 2014 we were approached by Mr Jason Clark who, having bought a one bedroom flat in Bishops Castle in August 2006. We are asked if we could shed any light on how much (roughly) premium would likely be for a ninety year extension to my lease. Comparable flats in Bishops Castle with a long lease were worth £223,400. The average ground rent payable was £60 collected yearly. The lease end date was in 2084. Having 59 years outstanding we estimated the premium to the freeholder for the lease extension to be within £27,600 and £31,800 exclusive of legals.