The value of Filton leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate substantially once the unexpired lease term is less than 80 years
Leasehold properties in Filton with more than 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service will provide you enhanced control over the value of your Filton leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Following lengthy discussions with the landlord of her purpose-built flat in Filton, Zoe commenced the lease extension process as the eighty year mark was quickly approaching. The legal work was concluded in January 2014. The freeholder’s fees were kept to an absolute minimum.
In 2014 we were contacted by Mr and Mrs. P Thomas who, having purchased a basement flat in Filton in July 2003. The dilemma was if we could approximate the price could be to extend the lease by 90 years. Comparable homes in Filton with 100 year plus lease were worth £270,000. The mid-range amount of ground rent was £55 invoiced annually. The lease elapsed in 2099. Having 75 years outstanding we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of expenses.
Last March we were contacted by Ms Melissa Carter , who moved into a one bedroom apartment in Filton in June 2003. The question was if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Identical residencies in Filton with 100 year plus lease were valued around £173,800. The average amount of ground rent was £65 billed quarterly. The lease finished in 2079. Considering the 55 years remaining we calculated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 not including professional charges.