Bonvilston leases on residential properties are gradually decreasing 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. It is the case that most Bonvilston tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Bonvilston you must check if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension sharply increases as part of the premium you pay is what is known as a marriage value
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the premises will be worth the same as a freehold for many years in the future.
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service gives you enhanced control over the value of your Bonvilston leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Jacob was the the leasehold proprietor of a conversion apartment in Bonvilston on the market with a lease of a little over sixty years remaining. Jacob informally spoke with his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Jacob to invoke his statutory right. Jacob obtained expert advice and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
Last year we were called by Mr and Mrs. H Ali , who moved into a one bedroom flat in Bonvilston in July 2011. The dilemma was if we could estimate the price would be for a ninety year lease extension. Identical flats in Bonvilston with 100 year plus lease were in the region of £210,600. The mid-range ground rent payable was £45 collected every twelve months. The lease concluded on 10 May 2088. Given that there were 62 years remaining we calculated the compensation to the freeholder for the lease extension to be between £18,100 and £20,800 exclusive of professional charges.
Mrs Chloe Martínez moved into a purpose-built apartment in Bonvilston in February 2010. The dilemma was if we could estimate the compensation to the landlord would be to prolong the lease by an additional years. Similar flats in Bonvilston with an extended lease were worth £265,000. The average amount of ground rent was £50 invoiced yearly. The lease terminated in 2099. Having 73 years outstanding we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including expenses.