Unfortunately that a Filton residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Filton property market.Once your lease nears 85ish years, you need to start thinking about a lease extension. If lease term slips under 80 years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Filton will be able to extend under the legislation; however a conveyancer should be able to confirm if you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the process.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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 |
| Yorkshire 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. |
Regardless of whether you are a tenant or a landlord in Filton,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Filton valuers.
After unsuccessful discussions with the landlord of her basement apartment in Filton, Kayleigh started the lease extension process as the eighty year mark was rapidly coming. The legal work completed in February 2011. The landlord’s costs were negotiated to approximately 700 GBP.
Last year we were e-mailed by Mr Tyler Adams , who owned a one bedroom flat in Filton in August 2012. The dilemma was if we could estimate the premium would be for a 90 year extension to my lease. Comparative homes in Filton with a long lease were worth £227,800. The average ground rent payable was £45 invoiced yearly. The lease finished in 2090. Taking into account 65 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 not including costs.
Mrs Kelsey Alexander moved into a recently refurbished apartment in Filton in August 1997. The dilemma was if we could estimate the price could be to extend the lease by an additional years. Similar homes in Filton with 100 year plus lease were worth £275,000. The mid-range amount of ground rent was £55 billed every twelve months. The lease concluded in 2101. Having 76 years unexpired we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus fees.