Bletchley leases on domestic properties are gradually losing value. if your lease has in the region of ninety years left, you should start thinking about a lease extension. An important point to note is that it is financially advisable for a lease extension to take place before the term of the current lease dips lower than 80 years - otherwise a higher premium will be due. Flat owners in Bletchley will usually qualify for a lease extension; however it’s a good idea to check with a lawyer to check your eligibility. In some circumstances you may not qualify. There are also strict deadlines and procedures to comply with once the process has started so it’s sensible to be guided by a conveyancer during the process.
It is generally considered that a property with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Halifax | 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. |
| 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 experts that we work with will always be willing 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.
Isaac owned a conversion apartment in Bletchley on the market with a lease of just over sixty years left. Isaac on an informal basis spoke with his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £200 annually. No ground rent would be payable on a lease extension were Isaac to invoke his statutory right. Isaac procured expert legal guidance and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
In 2012 we were approached by Dr V Norbert who, having owned a studio flat in Bletchley in November 2000. We are asked if we could estimate the price could be to prolong the lease by 90 years. Comparative premises in Bletchley with 100 year plus lease were worth £280,000. The mid-range ground rent payable was £55 billed per annum. The lease finished on 12 March 2103. Considering the 78 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 plus fees.
Last Winter we were e-mailed by Mrs S Hall , who purchased a ground floor flat in Bletchley in May 2012. We are asked if we could approximate the price would be to prolong the lease by a further 90 years. Comparable premises in Bletchley with an extended lease were valued around £191,000. The mid-range amount of ground rent was £65 invoiced monthly. The lease finished in 2083. Taking into account 58 years left we approximated the premium to the freeholder to extend the lease to be within £23,800 and £27,400 exclusive of fees.