It’s an underpublicised truth that a Bishops Cleeve residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Bishops Cleeve property prices.Once your lease gets to 85ish years, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below eighty years - otherwise a higher amount will be due. Most leasehold owners in Bishops Cleeve will be able to extend under the legislation; however a conveyancer should be able to confirm if you are eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to follow once the process is instigated and you will need to be guided by your conveyancer from beginning to end of the process.
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Bishops Cleeve,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Bishops Cleeve valuers.
Off the back of unsuccessful discussions with the landlord of her basement apartment in Bishops Cleeve, Lily started the lease extension process as the eighty year threshold was quickly coming. The lease extension completed in January 2009. The landlord’s costs were kept to an absolute minimum.
In 2010 we were e-mailed by Dr B Sánchez who, having bought a ground floor flat in Bishops Cleeve in February 1997. We are asked if we could approximate the price could be for a ninety year extension to my lease. Comparative homes in Bishops Cleeve with 100 year plus lease were worth £240,600. The mid-range amount of ground rent was £65 collected annually. The lease finished on 14 October 2087. Given that there were 62 years unexpired we calculated the premium to the freeholder to extend the lease to be between £21,900 and £25,200 plus costs.
In 2013 we were called by Mr Alexander Adams who, having purchased a garden apartment in Bishops Cleeve in May 2011. The question was if we could approximate the price could be to prolong the lease by an additional years. Comparative homes in Bishops Cleeve with an extended lease were worth £179,200. The average ground rent payable was £55 collected quarterly. The lease came to a finish in 2076. Considering the 51 years outstanding we calculated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 not including legals.