Bitterne leases on residential deteriorating in value. Where your lease has approximately ninety years left, you should start considering the need for a lease extension. 80 years is a significant number: when the remaining term of a lease dips below this level then you start incurring an additional element called marriage value. Leasehold owners in Bitterne will mostly qualify for a lease extension; however a solicitor should be able check your eligibility. In certain cases you may not qualify. There are prescribed timetables and steps to comply with once the process has commenced so it’s wise to be guided by a lawyer during the process.
Leasehold residencies in Bitterne with in excess of one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with procure Bitterne 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.
Subsequent to lengthy discussions with the freeholder of her studio flat in Bitterne, Freya initiated the lease extension process as the 80 year deadline was swiftly nearing. The lease extension was concluded in April 2008. The landlord’s charges were kept to an absolute minimum.
In 2011 we were approached by Mr and Mrs. N Turner who, having purchased a one bedroom flat in Bitterne in November 1995. We are asked if we could estimate the premium would be to prolong the lease by ninety years. Comparative flats in Bitterne with 100 year plus lease were in the region of £246,800. The mid-range ground rent payable was £60 collected every twelve months. The lease elapsed on 13 April 2076. Having 50 years outstanding we calculated the premium to the freeholder to extend the lease to be within £44,700 and £51,600 not including professional charges.
In 2010 we were contacted by Mr Elijah Evans who, having took over the lease of a one bedroom flat in Bitterne in January 2010. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by a further 90 years. Similar homes in Bitterne with 100 year plus lease were worth £208,200. The average amount of ground rent was £65 invoiced monthly. The lease ran out in 2087. Given that there were 61 years remaining we approximated the premium to the freeholder to extend the lease to be between £20,000 and £23,000 not including fees.