Bishops Cleeve Lease Extension - Free Consultation

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Why you should start your Bishops Cleeve lease extension


Why you should start your Bishops Cleeve lease extension today:

Increase your lease and increase your Bishops Cleeve property value

Bishops Cleeve residential property owned on a long lease is a wasting asset because a leaseholder only owns the property for a period of years.

An extended lease has roughly the same value as a freehold

It is generally considered that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.

Lenders may decide not to loan monies on a short lease

Many mortgage companies will be unwilling to lend on a lease with less than 70 years remaining - although this varies from lender to lender. A purchaser will no doubt find it difficult in obtaining a mortgage and this will result in your Bishops Cleeve property becoming difficult to sell or remortgage.

Lender Requirement
Accord Mortgages 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.
Barclays plc Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below).

Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office.

Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval:

• Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND
• The value of the property subject to the short remaining term is £500,000 or more AND
• The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing;
Halifax Minimum 70 years from the date 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
TSB Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.

Get in touch with one of our Bishops Cleeve lease extension solicitors or enfranchisement solicitors

Regardless of whether you are a tenant or a freeholder in Bishops Cleeve,the lease extension lawyers that we work with will always be willing 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.

Bishops Cleeve Lease Extension Case Summaries:

Leon, Bishops Cleeve, Gloucestershire,

Leon was the the leasehold proprietor of a conversion flat in Bishops Cleeve on the market with a lease of just over 72 years unexpired. Leon informally spoke with his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Leon to invoke his statutory right. Leon obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.

Bishops Cleeve case:

In 2012 we were contacted by Mr Dylan Taylor who, having owned a studio flat in Bishops Cleeve in April 2003. The question was if we could approximate the price could be for a ninety year lease extension. Comparable properties in Bishops Cleeve with an extended lease were worth £280,000. The mid-range amount of ground rent was £45 invoiced monthly. The lease termination date was on 17 June 2094. Given that there were 69 years remaining we estimated the premium to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of costs.

Bishops Cleeve case:

Dr R Cook purchased a newly refurbished flat in Bishops Cleeve in April 1998. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year extension to my lease. Comparable residencies in Bishops Cleeve with 100 year plus lease were in the region of £216,000. The mid-range amount of ground rent was £60 invoiced quarterly. The lease concluded in 2083. Taking into account 58 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 not including professional charges.