Unfortunately that a Bradley Stoke residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Bradley Stoke property market.Once your lease nears 85ish years, you should start thinking about a lease extension. If the number of years remaining slips below eighty years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of flat owners in Bradley Stoke will be able to extend under the legislation; however a conveyancer should be able to confirm whether you are eligibility. In some situations you may not qualify. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancer throughout the formalities.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the property will be equivalent in value to a freehold for many years in the future.
| 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; |
| Coventry Building Society | 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Retaining our service will provide you better control over the value of your Bradley Stoke leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of unsuccessful correspondence with the freeholder of her two bedroom flat in Bradley Stoke, Ella commenced the lease extension process as the 80 year threshold was rapidly nearing. The transaction completed in May 2005. The landlord’s costs were restricted to approximately six hundred GBP.
Mr F Gómez took over the lease of a one bedroom apartment in Bradley Stoke in August 2004. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year lease extension. Similar premises in Bradley Stoke with an extended lease were worth £300,000. The average ground rent payable was £50 billed every twelve months. The lease ended on 28 July 2101. Considering the 76 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 not including professional charges.
Mr and Mrs. M Roux owned a basement flat in Bradley Stoke in February 1999. We are asked if we could estimate the price would be to prolong the lease by an additional years. Comparative flats in Bradley Stoke with a long lease were valued about £252,800. The mid-range ground rent payable was £65 collected every twelve months. The lease concluded in 2090. Having 65 years remaining we estimated the compensation to the landlord to extend the lease to be within £17,100 and £19,800 not including expenses.