Fishponds leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. It is the case that most Fishponds tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Fishponds you should investigate if your lease has between 70 and ninety years remaining. There are compelling reasons why a Fishponds flat owner with a lease having around 80 years left should take action to ensure that a lease extension is actioned without delay
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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 |
| Yorkshire 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. |
Lease extensions in Fishponds can be a difficult process. We recommend you secure professional help from a lawyer and valuer with experience in this area.
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 Kai, came very near to the 80-year threshold with the lease on his leasehold apartment in Fishponds. Having purchased his property 19 years ago, the unexpired term was of minimal importance. Luckily, he became aware that he would soon be paying way over the odds for Extending the lease. Kai arranged for a lease extension just ahead of time in March. Kai and the freeholder subsequently settled on the final figure of £5,500 . If the lease had slipped to less than eighty years, the amount would have gone up by a minimum £1,075.
Dr Riley Scott took over the lease of a first floor flat in Fishponds in February 1997. We are asked if we could shed any light on how much (roughly) price would likely be for a ninety year extension to my lease. Comparative homes in Fishponds with 100 year plus lease were valued around £255,000. The mid-range ground rent payable was £50 collected per annum. The lease concluded on 28 November 2096. Considering the 70 years unexpired we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of legals.
Last October we were called by Mr and Mrs. Y Norbert , who moved into a first floor apartment in Fishponds in April 2011. The dilemma was if we could estimate the price could be for a ninety year lease extension. Similar residencies in Fishponds with a long lease were worth £246,800. The average ground rent payable was £60 invoiced per annum. The lease elapsed on 21 June 2076. Having 50 years outstanding we approximated the premium to the landlord for the lease extension to be between £44,700 and £51,600 exclusive of professional charges.