Unfortunately that a Bletchley residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Bletchley property market.Once your lease nears 85ish years, you need to start considering a lease extension. If lease term falls below eighty years, you will end up paying half of the property's 'marriage value' in addition to 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 Bletchley will be able to extend under the legislation; however a lawyer will be able to clarify if you are eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your lawyer for the duration of the formalities.
It is generally accepted that a property with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the property will be worth the same as a freehold for decades to come.
| 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. |
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with handle Bletchley lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
In the wake of 6 months of protracted correspondence with the landlord of her basement flat in Bletchley, Shannon commenced the lease extension process just as her lease was coming close to the critical 80-year threshold. The legal work was concluded in January 2008. The landlord’s fees were kept to an absolute minimum.
Dr Dexter Brown purchased a recently refurbished apartment in Bletchley in January 1998. The dilemma was if we could shed any light on how much (approximately) price would be to prolong the lease by a further 90 years. Similar residencies in Bletchley with a long lease were worth £290,000. The mid-range ground rent payable was £60 collected every twelve months. The lease came to a finish in 2106. Taking into account 80 years unexpired we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 not including professional charges.
Dr Lauren Rose bought a basement apartment in Bletchley in March 2004. We are asked if we could approximate the premium could be for a ninety year lease extension. Comparative homes in Bletchley with an extended lease were valued about £200,800. The average ground rent payable was £65 billed yearly. The lease lapsed in 2086. Given that there were 60 years unexpired we calculated the premium to the landlord for the lease extension to be within £20,900 and £24,200 not including costs.