It’s an underpublicised certainty that a Bridport residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Bridport property prices.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. If lease term drops under eighty years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of flat owners in Bridport will be able to extend under the legislation; however a conveyancer should be able to confirm if you qualify for an extension. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your lawyer for the duration of the process.
Leasehold residencies in Bridport with over 100 years unexpired 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 situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 conveyancers that we work with undertake 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.
In the wake of 9 months of protracted discussions with the landlord of her ground floor apartment in Bridport, Rebecca started the lease extension process as the 80 year threshold was fast nearing. The lease extension completed in March 2010. The landlord’s costs were kept to an absolute minimum.
In 2013 we were e-mailed by Dr Jayden Stewart who, having completed a garden apartment in Bridport in May 2012. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Identical premises in Bridport with 100 year plus lease were worth £250,400. The mid-range ground rent payable was £65 billed per annum. The lease termination date was in 2090. Given that there were 64 years left we calculated the compensation to the landlord to extend the lease to be between £19,000 and £22,000 plus costs.
Last Christmas we were phoned by Ms S Phillips , who was assigned a lease of a garden apartment in Bridport in June 1999. The question was if we could shed any light on how much (approximately) price could be to prolong the lease by 90 years. Comparative flats in Bridport with an extended lease were in the region of £189,000. The mid-range ground rent payable was £55 invoiced per annum. The lease concluded on 14 September 2079. Having 53 years unexpired we estimated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 not including expenses.