Unfortunately that a Bedminster residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Bedminster property market.Where your lease has approximately 90 years left, you should start thinking about a lease extension. If the number of years remaining falls under eighty years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of flat owners in Bedminster will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm whether you qualify for an extension. In some cases you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your lawyer for the duration of the formalities.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Bedminster can be a difficult process. We recommend you get professional help from a lawyer and valuer 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 in-depth market knowledge procuring Bedminster lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
George was the the leasehold proprietor of a 2 bedroom apartment in Bedminster being marketed with a lease of a few days over 61 years outstanding. George informally contacted his freeholder a well known London-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 a rise in the rent to £50 per annum. Ordinarily, ground rent would not be payable on a lease extension were George to exercise his statutory right. George obtained expert advice and secured satisfactory deal informally and sell the property.
Mr Callum Roberts acquired a one bedroom apartment in Bedminster in April 2002. The dilemma was if we could approximate the premium would likely be to prolong the lease by 90 years. Identical premises in Bedminster with an extended lease were worth £210,000. The mid-range amount of ground rent was £50 billed monthly. The lease lapsed on 27 October 2105. Given that there were 80 years outstanding we calculated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 plus professional charges.
In 2013 we were phoned by Mrs U Rogers who, having acquired a garden flat in Bedminster in November 2001. The question was if we could shed any light on how much (approximately) price would likely be for a 90 year extension to my lease. Identical residencies in Bedminster with 100 year plus lease were in the region of £275,000. The average ground rent payable was £45 collected every twelve months. The lease lapsed in 2094. Given that there were 69 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of expenses.