Bridgwater leases on domestic deteriorating in value. Where your lease has about ninety years unexpired, you should start considering the need for a lease extension. If lease term is less than eighty years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Bridgwater will usually be legally entitled to a lease extension; however a solicitor should be able check if you qualify. In some cases you may not be entitled. There are prescribed deadlines and steps to comply with once the process has started so it’s prudent to be guided by a lawyer during the process.
It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | 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 be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with undertake Bridgwater lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Subsequent to lengthy discussions with the freeholder of her garden apartment in Bridgwater, Rebecca initiated the lease extension process just as her lease was coming close to the all-important 80-year deadline. The lease extension was concluded in November 2009. The landlord’s fees were kept to an absolute minimum.
Last month we were phoned by Mr and Mrs. F Baker , who acquired a newly refurbished apartment in Bridgwater in April 2012. The dilemma was if we could shed any light on how much (roughly) premium would likely be to prolong the lease by ninety years. Comparable flats in Bridgwater with a long lease were in the region of £171,800. The mid-range ground rent payable was £55 collected quarterly. The lease terminated in 2076. Considering the 50 years remaining we approximated the compensation to the landlord for the lease extension to be within £33,300 and £38,400 plus expenses.
Last year we were contacted by Mrs Maisie Leroy , who bought a ground floor apartment in Bridgwater in September 2000. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by ninety years. Comparative premises in Bridgwater with a long lease were worth £280,000. The average ground rent payable was £45 invoiced monthly. The lease expired on 2 February 2096. Taking into account 70 years unexpired we calculated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of costs.