The basic rule is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Bletchley may extend the lease for an additional 90 years under legislation. Do think carefully before delaying your Bletchley lease extension. Postponing that expense now simply escalates the price you will ultimately be required to pay for a lease extension.
Leasehold premises in Bletchley with more than one hundred years outstanding 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 home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Coventry Building Society | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Retaining our service gives you enhanced control over the value of your Bletchley leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago George, started to get near to the 80-year mark with the lease on his one bedroom flat in Bletchley. In buying his property two decades ago, the lease term was of little significance. Luckily, he recognised he would soon be paying an inflated amount for Extending the lease. George arranged for a lease extension at the eleventh hour last August. George and the freeholder subsequently settled on a premium of £5,500 . If he failed to meet the deadline, the amount would have escalated by a minimum £975.
Dr S Hall took over the lease of a one bedroom apartment in Bletchley in February 2009. We are asked if we could estimate the price would be for a ninety year extension to my lease. Identical flats in Bletchley with 100 year plus lease were in the region of £260,000. The mid-range ground rent payable was £50 collected annually. The lease elapsed on 11 November 2095. Taking into account 71 years remaining we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus fees.
Dr G Petit owned a purpose-built flat in Bletchley in April 2011. We are asked if we could shed any light on how much (approximately) price would likely be for a ninety year lease extension. Comparable homes in Bletchley with an extended lease were valued around £254,200. The mid-range amount of ground rent was £60 billed yearly. The lease came to a finish on 27 August 2075. Having 51 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £43,700 and £50,600 exclusive of costs.