With a long leasehold premises in Bridport, you are actually buying an entitlement to live in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may think about a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater particularly once there are fewer than 80 years left. Residents in Bridport with a lease drawing near to 81 years left should seriously consider extending it sooner rather than later. When a lease has fewer than 80 years outstanding, under the relevant statute the landlord is entitled to calculate and demand a greater amount, assessed on a technical multiplication, known as “marriage value” which is payable.
It is generally considered that a residential leasehold with more than 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the property 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. |
| 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. |
Lease extensions in Bridport can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and valuer with experience in this area.
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 a wealth of experience dealing with Bridport lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Cameron, started to get near to the 80-year mark with the lease on his purpose- built flat in Bridport. Having bought his home two decades ago, the lease term was of little significance. As luck would have it, it dawned on him that he would imminently be paying an inflated amount for a lease extension. Cameron was able to extend his lease just under the wire last May. Cameron and the landlord who owned the flat above ultimately settled on a premium of £6,000 . If the lease had slid below eighty years, the sum would have increased by at least £1,150.
Last August we were phoned by Mr and Mrs. O Ali , who moved into a basement flat in Bridport in January 2011. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by ninety years. Comparable homes in Bridport with a long lease were in the region of £205,000. The mid-range ground rent payable was £50 collected per annum. The lease expired on 13 August 2104. Considering the 79 years left we calculated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 plus professional charges.
Last Christmas we were e-mailed by Mr W Adams , who acquired a garden flat in Bridport in April 2011. We are asked if we could shed any light on how much (roughly) premium would be for a 90 year lease extension. Identical homes in Bridport with a long lease were in the region of £275,000. The mid-range ground rent payable was £65 billed monthly. The lease expired in 2093. Given that there were 68 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of legals.