Bridport leases on domestic deteriorating in value. Where your lease has in the region of ninety years unexpired, you should start thinking about a lease extension. An important point to note is that it is desirable for the lease extension to take place before the term of the existing lease falls under 80 years - otherwise a higher amount will be due. Flat owners in Bridport will usually be legally entitled to a lease extension; however a solicitor should be able check your eligibility. In some cases you may not be entitled. There are prescribed timetables and steps to follow once the process is initiated so it’s wise to be guided by a lawyer during the process.
Leasehold residencies in Bridport with in excess of 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you increased control over the value of your Bridport leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
After lengthy correspondence with the landlord of her leasehold apartment in Bridport, Amy started the lease extension process as the eighty year mark was fast advancing. The lease extension was finalised in April 2014. The freeholder’s fees were restricted to approximately 700 pounds.
Last year we were phoned by Mr and Mrs. G Cook , who completed a purpose-built apartment in Bridport in January 1997. We are asked if we could estimate the premium could be to prolong the lease by an additional years. Comparable properties in Bridport with an extended lease were valued about £290,000. The average ground rent payable was £45 invoiced per annum. The lease expired on 2 September 2096. Given that there were 72 years as a residual term we calculated the premium to the landlord for the lease extension to be between £11,400 and £13,200 not including fees.
Last Autumn we were contacted by Dr W Brooks , who was assigned a lease of a basement flat in Bridport in April 2004. We are asked if we could approximate the premium would be for a 90 year extension to my lease. Comparable flats in Bridport with a long lease were in the region of £233,200. The average amount of ground rent was £60 invoiced yearly. The lease finished in 2085. Given that there were 61 years remaining we calculated the premium to the freeholder for the lease extension to be between £22,800 and £26,400 plus professional charges.