It’s a harsh truth that a Bridgwater residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Bridgwater property prices.Where your lease has approximately ninety years left, you need to start considering a lease extension. If the number of years remaining drops under 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 extra value that a lease extension will add the property Most leasehold owners in Bridgwater will be able to extend under the legislation; however a conveyancer will be able to confirm if you qualify for an extension. In some cases you may not qualify. There are also strict timetables and procedures to follow once the process is instigated and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
Leasehold premises in Bridgwater with over 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Lease extensions in Bridgwater can be a difficult process. We recommend you secure professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
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 a wealth of experience procuring Bridgwater lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Dylan, came perilously close to the 80-year threshold with the lease on his one bedroom flat in Bridgwater. Having bought his home two decades ago, the length of the lease was of little bearing. Luckily, he noticed he would imminently be paying an escalated premium for Extending the lease. Dylan was able to extend his lease at the eleventh hour in April. Dylan and the landlord who owned the flat above eventually settled on an amount of £6,000 . If he failed to meet the deadline, the sum would have become more costly by a minimum £900.
In 2014 we were phoned by Mrs F Clark who, having purchased a garden apartment in Bridgwater in January 1998. We are asked if we could approximate the price would likely be to extend the lease by 90 years. Similar residencies in Bridgwater with an extended lease were worth £285,000. The average amount of ground rent was £45 collected per annum. The lease came to a finish on 14 September 2096. Having 71 years outstanding we calculated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 not including fees.
Last month we were e-mailed by Ms S Clarke , who owned a basement apartment in Bridgwater in August 2012. The question was if we could estimate the premium would be to prolong the lease by a further 90 years. Comparable residencies in Bridgwater with 100 year plus lease were worth £225,800. The mid-range amount of ground rent was £60 billed every twelve months. The lease elapsed on 23 April 2085. Considering the 60 years outstanding we calculated the compensation to the landlord for the lease extension to be between £24,700 and £28,600 not including expenses.