Bishops Waltham leases on residential deteriorating in value. if your lease has about ninety years left, you should start considering the need for a lease extension. If lease term dips under eighty years, you will then be required to pay half of the property's 'marriage value' in addition to the standard cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Bishops Waltham will mostly qualify for a lease extension; however it’s a good idea to check with a lawyer to confirm your eligibility. In certain cases you may not be entitled. There are also strict deadlines and procedures to follow once the process is initiated so it’s best to be guided by a lawyer during the process.
Leasehold properties in Bishops Waltham with in excess of one hundred years unexpired 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 property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Coventry Building Society | 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
The lawyers that we work with procure Bishops Waltham lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Last year Reuben, started to get close to the eighty-year threshold with the lease on his studio apartment in Bishops Waltham. Having bought his flat twenty years ago, the length of the lease was of no interest. Luckily, he recognised he needed to take action soon on a lease extension. Reuben extended the lease just under the wire last January. Reuben and the freeholder via the management company in the end agreed on the final figure of £6,000 . If the lease had gone below eighty years, the premium would have increased by a minimum £1,100.
In 2014 we were e-mailed by Ms Bethan James who, having owned a studio flat in Bishops Waltham in March 1999. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by ninety years. Comparable homes in Bishops Waltham with 100 year plus lease were in the region of £280,000. The mid-range ground rent payable was £45 billed every twelve months. The lease lapsed in 2095. Given that there were 70 years outstanding we calculated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 not including professional charges.
Last Christmas we were contacted by Mr and Mrs. M Roberts , who moved into a basement apartment in Bishops Waltham in September 2000. We are asked if we could shed any light on how much (roughly) price would be to prolong the lease by an additional years. Comparable properties in Bishops Waltham with an extended lease were in the region of £223,400. The average ground rent payable was £60 invoiced per annum. The lease ended in 2084. Having 59 years remaining we estimated the premium to the landlord to extend the lease to be between £27,600 and £31,800 exclusive of legals.