With a long leasehold premises in Bridport, you are in fact renting it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive particularly when there are less than eighty years left. Leasehold owners in Bridport with a lease approaching 81 years remaining should seriously consider extending it sooner rather than later. When a lease has under 80 years outstanding, under the relevant statute the landlord can calculate and demand a larger amount, assessed on a technical calculation, known as “marriage value” which is due.
Leasehold residencies in Bridport with in excess of 100 years outstanding 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 to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with handle 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 conveyancer we work with provide it.
After protracted negotiations with the freeholder of her basement apartment in Bridport, Poppy started the lease extension process just as the lease was approaching the crucial eighty-year deadline. The transaction was concluded in August 2012. The freeholder’s costs were kept to an absolute minimum.
Last year we were called by Ms G Flores , who acquired a ground floor flat in Bridport in September 1997. The dilemma was if we could estimate the price could be for a 90 year lease extension. Similar residencies in Bridport with an extended lease were valued about £290,000. The mid-range ground rent payable was £45 billed every twelve months. The lease finished on 22 June 2098. Taking into account 72 years remaining we estimated the compensation to the freeholder for the lease extension to be within £11,400 and £13,200 plus professional charges.
Last Christmas we were approach by Dr Chloe Gómez , who acquired a one bedroom flat in Bridport in June 2010. The question was if we could shed any light on how much (roughly) premium would be to prolong the lease by an additional years. Identical flats in Bridport with a long lease were worth £233,200. The mid-range ground rent payable was £60 invoiced annually. The lease terminated on 20 September 2087. Taking into account 61 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £22,800 and £26,400 not including fees.