Unfortunately that a Filton residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Filton property prices.Once your lease gets to 85ish years, you need to start thinking about a lease extension. If lease term falls under 80 years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most flat owners in Filton will be able to extend under the legislation; however a conveyancer should be able to clarify whether you are eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process is initiated and you will need to be guided by your conveyancer from beginning to end of the process.
Leasehold residencies in Filton with over one hundred years unexpired on the lease are sometimes referred to as ‘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 freehold unless savings on ground rent and service charges warrant 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | 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. |
Lease extensions in Filton can be a difficult process. We recommend you procure guidance from a conveyancer 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 dealing with Filton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Lewis owned a high value apartment in Filton being sold with a lease of fraction over sixty years unexpired. Lewis informally spoke with his freeholder a well known London-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Lewis to invoke his statutory right. Lewis procured expert advice and secured satisfactory resolution without resorting to tribunal and ending up with a market value flat.
Last Summer we were approach by Mrs Francesca Parker , who purchased a studio flat in Filton in January 2008. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by a further 90 years. Similar flats in Filton with a long lease were in the region of £264,000. The average ground rent payable was £60 invoiced every twelve months. The lease ran out in 2079. Having 53 years remaining we calculated the premium to the freeholder to extend the lease to be between £37,100 and £42,800 plus costs.
In 2014 we were approached by Mrs J Smith who, having bought a one bedroom flat in Filton in August 1996. We are asked if we could shed any light on how much (approximately) price would likely be for a ninety year lease extension. Similar homes in Filton with an extended lease were valued around £225,400. The average amount of ground rent was £45 billed per annum. The lease finished on 26 February 2090. Given that there were 64 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £15,200 and £17,600 not including legals.