The market value of Bishops Cleeve leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase significantly once the remaining term is below than eighty years
Leasehold residencies in Bishops Cleeve with over one hundred years remaining on the lease are sometimes 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 buying the freehold unless savings on ground rent and service charges justify it.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with undertake Bishops Cleeve lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
In recent months Teddy, started to get near to the 80-year threshold with the lease on his one bedroom flat in Bishops Cleeve. Having purchased his property two decades ago, the lease term was of minimal bearing. As luck would have it, he realised he would imminently be paying an escalated premium for a lease extension. Teddy arranged for a lease extension just under the wire last September. Teddy and the freeholder via the managing agents ultimately settled on the final figure of £5,500 . If he failed to meet the deadline, the figure would have gone up by a minimum £925.
Dr Matthew Gunderson owned a garden flat in Bishops Cleeve in April 2008. We are asked if we could shed any light on how much (roughly) price could be to extend the lease by ninety years. Comparable residencies in Bishops Cleeve with 100 year plus lease were in the region of £171,800. The average ground rent payable was £55 collected monthly. The lease ended on 18 July 2075. Considering the 50 years outstanding we estimated the compensation to the landlord for the lease extension to be between £33,300 and £38,400 not including legals.
Last February we were e-mailed by Dr V Bonnet , who moved into a newly refurbished apartment in Bishops Cleeve in August 1996. The question was if we could approximate the price would be for a 90 year extension to my lease. Comparative flats in Bishops Cleeve with an extended lease were worth £280,000. The average amount of ground rent was £45 billed yearly. The lease ran out on 1 May 2095. Having 70 years as a residual term we estimated the premium to the landlord for the lease extension to be between £12,400 and £14,200 not including costs.