The basic rule is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Filton may extend the lease for an additional ninety years in accordance with legislation. Please give careful consideration before delaying your Filton lease extension. Putting off that expense today simply increases the premium you will eventually be required to pay for a lease extension.
Leasehold premises in Filton with more than 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| 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. |
| 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 conveyancer and surveyor 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 a wealth of experience 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.
16 months ago William, came dangerously near to the eighty-year mark with the lease on his garden apartment in Filton. Having purchased his flat 18 years ago, the lease term was of no concern. As luck would have it, it dawned on him that he would soon be paying way over the odds for a lease extension. William extended the lease just in the nick of time last April. William and the landlord who owned the flat above ultimately settled on sum of £5,500 . If the lease had descended lower than 80 years, the sum would have gone up by at least £900.
In 2010 we were approached by Mr Dexter Sharif who, having owned a one bedroom apartment in Filton in January 2005. The question was if we could approximate the premium would be to extend the lease by an additional years. Comparable homes in Filton with an extended lease were valued about £235,200. The mid-range ground rent payable was £45 invoiced every twelve months. The lease terminated on 27 August 2092. Taking into account 66 years left we estimated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of fees.
Last Summer we were called by Dr Kai Campbell , who acquired a one bedroom apartment in Filton in March 2001. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by ninety years. Comparable flats in Filton with a long lease were valued about £280,000. The mid-range ground rent payable was £55 collected monthly. The lease ran out in 2103. Given that there were 77 years remaining we calculated the premium to the landlord to extend the lease to be within £13,300 and £15,400 plus legals.