As the the remaining lease term of a Bridport residential lease decreases so does its value and therefore the value of your property. If the lease has, in excess of one hundred years remaining then this decrease may be of little impact that being said there will become a point in time when a lease has under than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should consider extending without delay. The majority of flat owners in Bridport will qualify for this right; nevertheless a conveyancing solicitor will be able to advise whether you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally accepted that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
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 recent months Reuben, started to get near to the eighty-year threshold with the lease on his basement flat in Bridport. In buying his home 18 years previously, the unexpired term was of no interest. As luck would have it, he noticed he needed to take action soon on a lease extension. Reuben extended the lease at the eleventh hour last September. Reuben and the freeholder ultimately agreed on an amount of £5,500 . If he had missed the deadline, the premium would have increased by a minimum £925.
In 2011 we were e-mailed by Dr W David who, having was assigned a lease of a newly refurbished apartment in Bridport in January 2003. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparable properties in Bridport with a long lease were worth £171,800. The mid-range amount of ground rent was £55 billed per annum. The lease elapsed in 2075. Having 50 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £32,300 and £37,400 exclusive of costs.
In 2013 we were approached by Dr K Allen who, having completed a purpose-built flat in Bridport in April 2006. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year extension to my lease. Comparative homes in Bridport with 100 year plus lease were in the region of £280,000. The mid-range amount of ground rent was £45 billed monthly. The lease ended on 3 August 2095. Having 70 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 plus expenses.