When it comes to residential leasehold property in Bishops Castle, you are actually buying an entitlement to live in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive especially when there are fewer than eighty years remaining. Leasehold owners in Bishops Castle with a lease drawing near to 81 years remaining should seriously consider extending it sooner as opposed to later. When a lease has under 80 years outstanding, under the current statute the landlord can calculate and levy a greater premium, based on a technical calculation, known as “marriage value” which is due.
Leasehold properties in Bishops Castle with over one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 Bishops Castle can be a difficult process. We recommend you obtain professional help from a lawyer and valuer 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 a wealth of experience procuring Bishops Castle lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Finn, came critically close to the 80-year threshold with the lease on his two bedroom flat in Bishops Castle. In buying his home twenty years ago, the lease term was of minimal importance. As luck would have it, he became aware that he needed to take steps soon on Extending the lease. Finn extended the lease at the eleventh hour last March. Finn and the freeholder via the managing agents in the end settled on the final figure of £5,000 . If he not met the deadline, the sum would have escalated by a minimum £1,075.
Mr and Mrs. N Rivera acquired a garden apartment in Bishops Castle in May 2010. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Similar flats in Bishops Castle with a long lease were in the region of £243,000. The average amount of ground rent was £65 collected every twelve months. The lease came to a finish on 16 October 2088. Given that there were 63 years outstanding we estimated the premium to the landlord to extend the lease to be between £20,000 and £23,000 plus costs.
In 2012 we were e-mailed by Mr and Mrs. W Rodríguez who, having bought a first floor flat in Bishops Castle in February 2002. We are asked if we could estimate the price could be for a ninety year extension to my lease. Comparative residencies in Bishops Castle with 100 year plus lease were valued about £181,600. The average amount of ground rent was £55 collected monthly. The lease expired in 2077. Taking into account 52 years left we approximated the premium to the freeholder for the lease extension to be between £30,400 and £35,200 not including legals.