The market value of Bridport leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate significantly once the unexpired lease term is less than eighty years
It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with handle Bridport 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 conveyancing solicitor we work with provide it.
Noah was the the leasehold owner of a 2 bedroom flat in Bridport on the market with a lease of fraction over 72 years remaining. Noah on an informal basis approached his landlord being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £125 annually. Ordinarily, ground rent would not be due on a lease extension were Noah to invoke his statutory right. Noah procured expert advice and secured an acceptable deal informally and sell the flat.
Mr D Anderson was assigned a lease of a recently refurbished apartment in Bridport in April 1999. We are asked if we could approximate the price would likely be to prolong the lease by a further 90 years. Identical residencies in Bridport with a long lease were worth £275,000. The mid-range amount of ground rent was £65 billed annually. The lease ended on 10 May 2093. Having 68 years unexpired we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of fees.
In 2011 we were approached by Dr U Clarke who, having took over the lease of a garden flat in Bridport in February 2002. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by an additional years. Identical premises in Bridport with 100 year plus lease were valued around £213,600. The average amount of ground rent was £60 invoiced per annum. The lease terminated in 2082. Taking into account 57 years unexpired we calculated the premium to the freeholder for the lease extension to be between £30,400 and £35,200 not including professional charges.