Blandfordum leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now which entitles qualifying Blandfordum residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Blandfordum you should see if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under 80 years, the cost of any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
Leasehold premises in Blandfordum with over 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Blandfordum,the lease extension solicitors 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 Blandfordum valuers.
16 months ago John, started to get near to the eighty-year mark with the lease on his two bedroom flat in Blandfordum. Having purchased his property two decades ago, the length of the lease was of little interest. Fortunately, he recognised he needed to take action soon on a lease extension. John arranged for a lease extension at the eleventh hour last March. John and the freeholder ultimately agreed on sum of £5,500 . If he not met the deadline, the price would have escalated by at least £875.
In 2009 we were contacted by Mr and Mrs. L Brown who, having completed a basement apartment in Blandfordum in June 2006. The question was if we could estimate the price would likely be for a ninety year lease extension. Similar properties in Blandfordum with a long lease were valued around £261,600. The average ground rent payable was £60 billed annually. The lease ended on 10 January 2077. Having 52 years unexpired we approximated the premium to the landlord to extend the lease to be between £39,000 and £45,000 exclusive of fees.
In 2010 we were approached by Mr K Mitchell who, having completed a recently refurbished flat in Blandfordum in August 1997. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar flats in Blandfordum with 100 year plus lease were in the region of £218,000. The average ground rent payable was £45 billed per annum. The lease terminated in 2088. Taking into account 63 years outstanding we approximated the premium to the freeholder for the lease extension to be within £17,100 and £19,800 exclusive of professional charges.