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 becomes 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 should see if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under 80 years, the cost of 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 over 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Lease extensions in Bridport can be a difficult process. We recommend you obtain guidance from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Bridport lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing lengthy negotiations with the freeholder of her garden apartment in Bridport, Tia commenced the lease extension process just as her lease was approaching the critical eighty-year mark. The transaction was concluded in October 2007. The freeholder’s fees were kept to an absolute minimum.
Last Autumn we were approach by Mr and Mrs. L Gómez , who bought a first floor apartment in Bridport in March 1998. The question was if we could estimate the price could be to prolong the lease by a further 90 years. Comparable flats in Bridport with a long lease were in the region of £280,000. The mid-range amount of ground rent was £45 billed annually. The lease elapsed on 22 January 2094. Taking into account 69 years outstanding we calculated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of fees.
Last Christmas we were e-mailed by Mr and Mrs. A James , who bought a purpose-built apartment in Bridport in July 2008. We are asked if we could shed any light on how much (approximately) price would likely be for a ninety year lease extension. Comparable premises in Bridport with an extended lease were worth £216,000. The mid-range ground rent payable was £60 invoiced annually. The lease finished in 2083. Considering the 58 years outstanding we calculated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 plus fees.