There is no doubt about it a leasehold flat or house in Fishponds is a wasting asset as a result of the shortening lease. Where the residual term has, in excess of 100 years remaining then this decrease may be fractional that being said there will become a stage when a lease has less than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should consider extending without delay. Most flat owners in Fishponds will qualify for this right; nevertheless a conveyancing solicitor can confirm if you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold premises in Fishponds with more than 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Fishponds can be a difficult process. We recommend you secure guidance 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 dealing with Fishponds lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Jake, started to get close to the eighty-year threshold with the lease on his two bedroom apartment in Fishponds. Having bought his flat two decades ago, the lease term was of no interest. Luckily, he noticed he would soon be paying an escalated premium for Extending the lease. Jake arranged for a lease extension just in the nick of time last March. Jake and the freeholder in the end settled on sum of £5,500 . If he failed to meet the deadline, the premium would have escalated by at least £875.
Last month we were approach by Mr and Mrs. Y Martínez , who completed a one bedroom apartment in Fishponds in November 1995. We are asked if we could shed any light on how much (roughly) premium would be to prolong the lease by ninety years. Identical homes in Fishponds with an extended lease were in the region of £275,000. The mid-range amount of ground rent was £55 collected per annum. The lease concluded in 2103. Considering the 77 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 not including legals.
Mrs Danielle Cox bought a first floor apartment in Fishponds in November 1997. We are asked if we could shed any light on how much (roughly) price would be to prolong the lease by 90 years. Similar flats in Fishponds with 100 year plus lease were valued about £183,600. The average ground rent payable was £65 collected yearly. The lease ran out on 11 March 2083. Given that there were 57 years left we estimated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 not including expenses.