Chances are that where you own a flat in Bridgwater you actually own a long leasehold interest over your property
Leasehold properties in Bridgwater with more than 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire Building Society | 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. |
The lawyers 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.
In 2014 Tyler, came perilously near to the eighty-year mark with the lease on his one bedroom apartment in Bridgwater. Having bought his property two decades ago, the length of the lease was of minimal relevance. Fortunately, he became aware that he needed to take steps soon on a lease extension. Tyler extended the lease just under the wire in August. Tyler and the landlord who owned the flat above in the end agreed on a premium of £5,000 . If he not met the deadline, the price would have increased by a minimum £950.
Last Summer we were approach by Dr C Vincent , who purchased a garden apartment in Bridgwater in January 1997. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Comparative homes in Bridgwater with a long lease were in the region of £181,600. The average ground rent payable was £55 invoiced yearly. The lease ended in 2077. Having 52 years remaining we approximated the premium to the freeholder for the lease extension to be within £30,400 and £35,200 plus expenses.
Last Spring we were contacted by Dr Anna Peterson , who moved into a one bedroom flat in Bridgwater in May 2010. We are asked if we could estimate the compensation to the landlord could be for a 90 year lease extension. Comparative premises in Bridgwater with 100 year plus lease were in the region of £290,000. The mid-range amount of ground rent was £45 invoiced monthly. The lease finished in 2097. Having 72 years left we estimated the premium to the freeholder for the lease extension to be between £11,400 and £13,200 plus expenses.