Bridport leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. The majority of owners of residential leasehold property in Bridport enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Bridport you would be well advised to check if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value
It is conventional wisdom that a property with more than 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
Retaining our service will provide 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 lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to unsuccessful negotiations with the landlord of her studio flat in Bridport, Lily initiated the lease extension process just as her lease was approaching the crucial eighty-year threshold. The lease extension was concluded in June 2006. The freeholder’s costs were kept to an absolute minimum.
In 2014 we were phoned by Mrs Tia Evans who, having bought a one bedroom apartment in Bridport in July 2002. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by a further 90 years. Similar residencies in Bridport with a long lease were worth £205,000. The average ground rent payable was £50 invoiced every twelve months. The lease ran out on 6 April 2104. Considering the 78 years unexpired we estimated the compensation to the landlord for the lease extension to be within £7,600 and £8,800 plus expenses.
Mr and Mrs. O Díaz was assigned a lease of a purpose-built flat in Bridport in October 2008. We are asked if we could shed any light on how much (approximately) premium would likely be for a 90 year extension to my lease. Comparable flats in Bridport with a long lease were worth £267,600. The mid-range ground rent payable was £65 billed per annum. The lease elapsed on 8 November 2093. Given that there were 67 years left we approximated the premium to the freeholder for the lease extension to be between £14,300 and £16,400 plus fees.