Bridport leases on residential properties are gradually losing value. if your lease has about ninety years left, you should start considering the need for a lease extension. If lease term is less than 80 years, you will then be required to pay half of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Bridport will usually be legally entitled to a lease extension; however a solicitor should be able confirm your eligibility. In certain cases you may not be entitled. There are prescribed deadlines and procedures to comply with once the process is initiated so it’s wise to be guided by a conveyancing solicitor during the process.
Leasehold properties in Bridport with over one hundred years left on the lease are sometimes 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 upside in buying the reversionary interest unless savings on ground rent and estate charges merit 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Bridport,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Bridport valuers.
Subsequent to protracted negotiations with the freeholder of her studio flat in Bridport, Tia started the lease extension process just as the lease was nearing the critical eighty-year threshold. The lease extension was concluded in April 2005. The landlord’s fees were restricted to about 500 pounds.
Last Autumn we were approach by Dr Maisie Ramírez , who owned a one bedroom flat in Bridport in August 1999. The question was if we could shed any light on how much (approximately) premium would be for a 90 year extension to my lease. Similar premises in Bridport with a long lease were valued around £200,000. The average amount of ground rent was £50 billed quarterly. The lease finished on 20 March 2102. Considering the 77 years left we estimated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of expenses.
Last Autumn we were approach by Mr and Mrs. I Sharif , who bought a ground floor apartment in Bridport in August 2001. We are asked if we could estimate the premium would likely be for a 90 year extension to my lease. Comparative properties in Bridport with 100 year plus lease were in the region of £265,200. The average ground rent payable was £65 collected every twelve months. The lease lapsed in 2091. Having 66 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £15,200 and £17,600 exclusive of costs.