The market value of Filton leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase materialy once the unexpired lease term is less than eighty years
Leasehold residencies in Filton with more than 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with undertake Filton 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.
Teddy owned a studio apartment in Filton being sold with a lease of a little over fifty eight years remaining. Teddy informally contacted his landlord a well known local-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £125 yearly. Ordinarily, ground rent would not be payable on a lease extension were Teddy to invoke his statutory right. Teddy obtained expert legal guidance and was able to make an informed judgement and deal with the matter and readily saleable.
In 2011 we were e-mailed by Dr R Edwards who, having acquired a ground floor apartment in Filton in September 2007. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Comparative properties in Filton with an extended lease were worth £285,000. The mid-range ground rent payable was £55 collected quarterly. The lease finished on 26 February 2104. Having 79 years left we approximated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 not including legals.
Mr and Mrs. I Roberts was assigned a lease of a basement apartment in Filton in August 2005. We are asked if we could estimate the compensation to the landlord could be for a 90 year lease extension. Comparable homes in Filton with a long lease were worth £193,400. The mid-range amount of ground rent was £65 billed monthly. The lease expired in 2084. Considering the 59 years outstanding we approximated the premium to the freeholder for the lease extension to be within £21,900 and £25,200 plus expenses.