Bridgwater leases on residential properties are gradually losing value. Where your lease has approximately 90 years unexpired, you should start considering the need for a lease extension. 80 years is a significant number: when the unexpired term of a lease dips below this level then you begin paying an additional element called marriage value. Leasehold owners in Bridgwater will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancer to check if you qualify. In certain circumstances you may not qualify. There are prescribed deadlines and procedures to comply with once the process has started so it’s sensible to be guided by a conveyancing solicitor during the process.
Leasehold properties in Bridgwater with over one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth 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 estate charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Lease extensions in Bridgwater can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and valuer with experience in lease extensions.
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 Bridgwater lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing protracted correspondence with the freeholder of her garden flat in Bridgwater, Olivia started the lease extension process as the 80 year mark was rapidly nearing. The legal work completed in April 2011. The freeholder’s charges were kept to an absolute minimum.
In 2010 we were approached by Mrs P Mercier who, having was assigned a lease of a one bedroom apartment in Bridgwater in October 2001. We are asked if we could estimate the price would be to extend the lease by ninety years. Comparable residencies in Bridgwater with a long lease were worth £208,600. The average ground rent payable was £60 invoiced per annum. The lease expired on 20 May 2083. Taking into account 57 years left we estimated the premium to the freeholder for the lease extension to be within £30,400 and £35,200 exclusive of expenses.
In 2011 we were contacted by Mr V Cook who, having acquired a basement flat in Bridgwater in January 2004. The question was if we could estimate the price would be for a 90 year extension to my lease. Similar homes in Bridgwater with an extended lease were in the region of £200,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease came to a finish on 3 May 2103. Considering the 77 years unexpired we calculated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 plus professional charges.