When it comes to residential leasehold property in Bletchley, you are in fact renting it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should consider extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are less than eighty years left. Anyone in Bletchley with a lease nearing 81 years left should seriously think of extending it as soon as possible. Once a lease has less than 80 years left, under the relevant legislation the freeholder can calculate and levy a larger premium, assessed on a technical computation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| 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. |
| 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 be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
The conveyancers 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.
Hugo was the the leasehold proprietor of a studio flat in Bletchley on the market with a lease of a little over 59 years left. Hugo on an informal basis spoke with his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 annually. No ground rent would be payable on a lease extension were Hugo to exercise his statutory right. Hugo obtained expert advice and secured an acceptable deal without going to tribunal and ending up with a market value flat.
Mr and Mrs. G Gunderson acquired a garden apartment in Bletchley in March 2010. The question was if we could shed any light on how much (approximately) price would likely be to prolong the lease by 90 years. Comparable homes in Bletchley with 100 year plus lease were worth £270,000. The average ground rent payable was £55 billed per annum. The lease ended on 10 May 2101. Given that there were 75 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including fees.
Last Autumn we were phoned by Dr Yasmin Simon , who was assigned a lease of a purpose-built flat in Bletchley in November 2010. We are asked if we could approximate the premium could be to extend the lease by an additional years. Identical residencies in Bletchley with 100 year plus lease were valued around £173,800. The average amount of ground rent was £60 invoiced quarterly. The lease finished in 2081. Considering the 55 years remaining we estimated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 exclusive of legals.