Bletchley residential property held on a long lease is a depreciating asset as the leaseholder only owns the property for a period of years.
Leasehold residencies in Bletchley with more than one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Bletchley,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 in-depth market knowledge and the close ties they enjoy with Bletchley valuers.
Zachary was the the leasehold proprietor of a 2 bedroom apartment in Bletchley being marketed with a lease of a little over 61 years remaining. Zachary informally contacted his landlord being a well known Manchester-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Zachary to invoke his statutory right. Zachary procured expert advice and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
In 2009 we were e-mailed by Mr and Mrs. F Davies who, having completed a newly refurbished flat in Bletchley in April 2003. The dilemma was if we could shed any light on how much (approximately) price would be for a ninety year extension to my lease. Comparable premises in Bletchley with a long lease were valued about £270,000. The mid-range ground rent payable was £55 billed every twelve months. The lease elapsed in 2099. Considering the 74 years outstanding we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of professional charges.
Mr and Mrs. T Wright took over the lease of a one bedroom apartment in Bletchley in July 2007. We are asked if we could approximate the price could be for a 90 year lease extension. Identical properties in Bletchley with 100 year plus lease were valued about £166,400. The mid-range amount of ground rent was £60 collected yearly. The lease terminated on 1 January 2079. Taking into account 54 years remaining we calculated the premium to the freeholder to extend the lease to be within £32,300 and £37,400 exclusive of professional charges.