Bitterne leases on residential deteriorating in value. Where your lease has about 90 years left, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for your lease extension to take place before the term of the existing lease dips below eighty years - otherwise a higher premium will be due. Flat owners in Bitterne will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to check your eligibility. In some situations you may not be entitled. There are prescribed deadlines and procedures to follow once the process has started so it’s prudent to be guided by a conveyancer during the process.
Leasehold properties in Bitterne with in excess of 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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; |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Bitterne can be a difficult process. We recommend you get guidance from a conveyancing solicitor and surveyor 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 in-depth market knowledge dealing with Bitterne lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Benjamin was the the leasehold proprietor of a conversion apartment in Bitterne on the market with a lease of a little over 61 years outstanding. Benjamin informally contacted his landlord a well known London-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Benjamin to invoke his statutory right. Benjamin obtained expert legal guidance and was able to make an informed decision and handle with the matter and readily saleable.
In 2014 we were approached by Mr I Martin who, having owned a garden flat in Bitterne in January 1998. We are asked if we could estimate the price would be to prolong the lease by a further 90 years. Comparative residencies in Bitterne with a long lease were worth £225,400. The average ground rent payable was £45 billed annually. The lease concluded in 2090. Considering the 64 years as a residual term we estimated the premium to the landlord for the lease extension to be between £15,200 and £17,600 plus professional charges.
Last Summer we were phoned by Dr Lydia Morgan , who took over the lease of a one bedroom flat in Bitterne in June 2000. The dilemma was if we could shed any light on how much (approximately) premium could be to extend the lease by an additional years. Similar premises in Bitterne with 100 year plus lease were worth £270,000. The mid-range amount of ground rent was £55 billed every twelve months. The lease terminated in 2101. Taking into account 75 years left we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus professional charges.