Bishopston leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Most owners of residential leasehold property in Bishopston enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Bishopston you should check if your lease has between 70 and ninety years remaining. There are compelling reasons why a Bishopston leaseholder with a lease having around eighty years remaining should take action to ensure that a lease extension is effected without delay
It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
| 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. |
Using our service gives you enhanced control over the value of your Bishopston leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
After lengthy negotiations with the freeholder of her leasehold flat in Bishopston, Danielle started the lease extension process just as the lease was nearing the crucial eighty-year deadline. The lease extension was finalised in November 2007. The landlord’s costs were kept to an absolute minimum.
Last Spring we were approach by Mr and Mrs. B Rose , who bought a garden flat in Bishopston in July 1998. We are asked if we could estimate the compensation to the landlord would be for a ninety year lease extension. Identical properties in Bishopston with 100 year plus lease were worth £275,000. The average ground rent payable was £55 collected every twelve months. The lease finished on 27 February 2102. Considering the 77 years left we approximated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 not including costs.
Last Spring we were called by Mr and Mrs. D Baker , who moved into a ground floor apartment in Bishopston in July 2004. The dilemma was if we could shed any light on how much (roughly) price would be to prolong the lease by a further 90 years. Similar homes in Bishopston with a long lease were valued about £183,600. The mid-range ground rent payable was £65 billed yearly. The lease terminated on 10 April 2082. Considering the 57 years remaining we calculated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 plus legals.