The closer a residential lease in Bishops Cleeve nears to zero years unexpired, the more it reduces the value of the property. Where the residual term has, in excess of 125 years to run then this decrease may be of little impact that being said there will become a stage 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 main rational as to why you should extend the lease without delay. Many flat owners in Bishops Cleeve will meet the qualifying criteria; that being said a conveyancing solicitor can advise whether you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold properties in Bishops Cleeve with in excess of 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Using our service will provide you better control over the value of your Bishops Cleeve leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Jonathan was the the leasehold owner of a high value flat in Bishops Cleeve being marketed with a lease of just over sixty years left. Jonathan on an informal basis spoke with his freeholder a well known local-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Jonathan to exercise his statutory right. Jonathan obtained expert advice and secured an acceptable deal without going to tribunal and readily saleable.
Last November we were phoned by Mr E Ward , who moved into a one bedroom apartment in Bishops Cleeve in November 2007. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Comparable properties in Bishops Cleeve with a long lease were valued around £248,000. The mid-range ground rent payable was £65 billed every twelve months. The lease lapsed on 6 October 2088. Taking into account 63 years as a residual term we approximated the premium to the landlord for the lease extension to be within £20,000 and £23,000 exclusive of professional charges.
In 2014 we were called by Mr Harry Patel who, having took over the lease of a purpose-built flat in Bishops Cleeve in January 2000. The question was if we could approximate the premium could be for a ninety year lease extension. Comparative residencies in Bishops Cleeve with an extended lease were worth £181,600. The average ground rent payable was £55 invoiced yearly. The lease concluded on 20 January 2077. Given that there were 52 years as a residual term we approximated the premium to the landlord to extend the lease to be within £30,400 and £35,200 plus costs.