Owning a flat usually means owning a lease of the property, which has a set term of years. This lease will normally be granted for a set period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Bletchley. Clearly, the length of lease left reduces over time. This may slip by relatively unnoticed when the property needs to be sold or refinanced. The shorter the lease the less it is worth and the more expensive it will be to extend the lease. Qualifying leaseholders in Bletchley have the legal entitlement to extend the lease for an additional 90 years in accordance with statute. Please give careful deliberation before delaying your Bletchley lease extension. Putting off that expense now simply increases the price you will ultimately have to pay to extend your lease
It is generally accepted that a property with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with procure 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.
18 months ago Toby, started to get close to the 80-year threshold with the lease on his garden flat in Bletchley. In buying his home twenty years previously, the length of the lease was of little significance. Thankfully, he became aware that he would soon be paying an escalated premium for a lease extension. Toby arranged for a lease extension just ahead of time in August. Toby and the freeholder ultimately agreed on a premium of £5,000 . If he had missed the deadline, the sum would have increased by a minimum £1,025.
Ms Sian Morris owned a garden flat in Bletchley in September 2012. We are asked if we could estimate the premium could be to prolong the lease by an additional years. Identical residencies in Bletchley with an extended lease were valued about £254,200. The mid-range ground rent payable was £60 billed monthly. The lease ended in 2076. Considering the 51 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £43,700 and £50,600 not including legals.
In 2012 we were called by Mr Arthur Miller who, having completed a one bedroom apartment in Bletchley in August 1999. The dilemma was if we could estimate the premium would be to extend the lease by a further 90 years. Identical homes in Bletchley with a long lease were valued about £210,600. The average amount of ground rent was £45 invoiced yearly. The lease expired on 17 November 2087. Considering the 62 years left we estimated the compensation to the landlord to extend the lease to be between £18,100 and £20,800 exclusive of professional charges.