On the balance of probabilities if you own a flat in Bonvilston you actually own a long leasehold interest over your property
It is generally considered that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years left, the property will be equivalent in value to a freehold for decades to come.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in Bonvilston,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Bonvilston valuers.
Leo was the the leasehold owner of a studio flat in Bonvilston on the market with a lease of just over 59 years remaining. Leo informally contacted his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £100 per annum. No ground rent would be due on a lease extension were Leo to exercise his statutory right. Leo procured expert advice and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
Mr Jonathan André purchased a one bedroom flat in Bonvilston in October 2002. The dilemma was if we could shed any light on how much (roughly) premium could be to extend the lease by 90 years. Comparable premises in Bonvilston with a long lease were worth £173,800. The average ground rent payable was £60 billed per annum. The lease expired on 25 October 2080. Considering the 55 years remaining we calculated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 exclusive of legals.
Last month we were e-mailed by Mr H Smith , who purchased a purpose-built apartment in Bonvilston in October 2006. We are asked if we could shed any light on how much (approximately) premium would be for a 90 year lease extension. Similar homes in Bonvilston with an extended lease were worth £235,200. The average ground rent payable was £45 billed monthly. The lease concluded on 28 June 2091. Taking into account 66 years left we approximated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 not including expenses.