Filton leases on domestic properties are gradually losing value. if your lease has approximately 90 years remaining, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease falls below this level then you begin incurring an additional element called marriage value. Leasehold owners in Filton will mostly qualify for a lease extension; however a solicitor will check if you qualify. In some situations you may not be entitled. There are also strict deadlines and steps to comply with once the process has commenced so it’s wise to be guided by a conveyancer during the process.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, 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. |
| 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; |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Filton can be a difficult process. We recommend you obtain professional help from a conveyancer and surveyor with experience in lease extensions.
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 procuring Filton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Stanley was the the leasehold owner of a 2 bedroom flat in Filton being sold with a lease of a little over sixty years left. Stanley informally contacted his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 yearly. Ordinarily, ground rent would not be due on a lease extension were Stanley to exercise his statutory right. Stanley obtained expert advice and was able to make a more informed decision and deal with the matter and readily saleable.
Mrs E Rivera bought a purpose-built apartment in Filton in February 2002. We are asked if we could approximate the price could be for a 90 year lease extension. Comparable properties in Filton with a long lease were worth £280,000. The mid-range amount of ground rent was £55 collected monthly. The lease elapsed on 27 November 2102. Considering the 77 years left we approximated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of expenses.
Mr and Mrs. J Mason purchased a one bedroom flat in Filton in July 1995. The dilemma was if we could estimate the premium could be to prolong the lease by an additional years. Comparable homes in Filton with a long lease were worth £183,600. The average amount of ground rent was £65 billed yearly. The lease ran out in 2082. Taking into account 57 years unexpired we calculated the premium to the landlord to extend the lease to be between £28,500 and £33,000 exclusive of costs.