The re-sale value of a leasehold property in Filton is impacted by how long the lease has remaining. If it is close to or fewer than 80 years you should anticipate difficulties on re-sale, so it is advisable to arrange for the lease to be extended prior to buying. It is preferable to start the process of extending the lease is when the lease still has 82 years to run so that all matters can be concluded in advance of the eighty year cut off point. Statute entitles Filton qualifying lessees to a 90 year extension added to their unexpired lease term (ie if your lease has fifty years remaining the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Filton can be a difficult process. We recommend you get professional help from a conveyancing solicitor and valuer with experience in lease extensions.
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 a wealth of experience procuring Filton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Liam owned a studio apartment in Filton being marketed with a lease of fraction over 59 years left. Liam on an informal basis approached his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £100 per annum. Ordinarily, ground rent would not be due on a lease extension were Liam to invoke his statutory right. Liam procured expert legal guidance and was able to make an informed decision and handle with the matter and ending up with a market value flat.
In 2012 we were called by Dr J Green who, having took over the lease of a ground floor apartment in Filton in January 1998. The question was if we could shed any light on how much (approximately) price could be for a ninety year lease extension. Identical flats in Filton with 100 year plus lease were valued about £191,000. The mid-range ground rent payable was £65 collected per annum. The lease concluded on 15 April 2084. Having 58 years remaining we estimated the premium to the landlord for the lease extension to be within £23,800 and £27,400 plus professional charges.
In 2009 we were called by Mr Michael Fournier who, having acquired a one bedroom flat in Filton in November 2008. We are asked if we could approximate the price could be to extend the lease by a further 90 years. Comparative homes in Filton with a long lease were in the region of £250,000. The average amount of ground rent was £50 invoiced annually. The lease ended on 23 February 2095. Given that there were 69 years as a residual term we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including legals.