With a residential leasehold premises in Fishponds, you are in fact renting it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may consider extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater notably once there are fewer than 80 years remaining. Leasehold owners in Fishponds with a lease drawing near to 81 years left should seriously think of extending it as soon as possible. Once a lease has below eighty years left, under the relevant statute the freeholder can calculate and levy a larger amount, based on a technical calculation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Fishponds,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Fishponds valuers.
Last Winter James, started to get near to the eighty-year mark with the lease on his basement apartment in Fishponds. Having bought his property two decades ago, the length of the lease was of minimal significance. Luckily, he recognised he would soon be paying an inflated amount for a lease extension. James arranged for a lease extension just ahead of time last April. James and the freeholder ultimately settled on sum of £5,500 . If the lease had gone below 80 years, the price would have escalated by at least £975.
Dr J Kelly owned a ground floor flat in Fishponds in June 2010. We are asked if we could estimate the compensation to the landlord could be to extend the lease by a further 90 years. Identical homes in Fishponds with a long lease were worth £186,000. The mid-range amount of ground rent was £65 billed annually. The lease end date was in 2084. Considering the 58 years left we approximated the premium to the freeholder to extend the lease to be within £24,700 and £28,600 not including costs.
Mr and Mrs. T Alexander owned a recently refurbished apartment in Fishponds in March 1995. We are asked if we could approximate the premium would be for a 90 year extension to my lease. Comparable flats in Fishponds with 100 year plus lease were worth £250,000. The average amount of ground rent was £50 invoiced every twelve months. The lease termination date was in 2095. Considering the 69 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of costs.