Bletchley leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Most owners of residential leasehold property in Bletchley enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Bletchley you must check if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
Leasehold properties in Bletchley with in excess of one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Chelsea Building Society | |
| Santander | |
| TSB | |
| Yorkshire Building Society |
Retaining our service will provide you better control over the value of your Bletchley leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Ben owned a studio apartment in Bletchley being sold with a lease of a few days over 59 years remaining. Ben on an informal basis spoke with his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £50 annually. Ordinarily, ground rent would not be payable on a lease extension were Ben to invoke his statutory right. Ben procured expert advice and secured satisfactory resolution without resorting to tribunal and sell the flat.
In 2009 we were phoned by Mr and Mrs. N Lefebvre who, having owned a garden flat in Bletchley in May 1997. The dilemma was if we could shed any light on how much (roughly) premium would likely be to extend the lease by 90 years. Comparative flats in Bletchley with a long lease were in the region of £200,800. The mid-range ground rent payable was £65 invoiced per annum. The lease termination date was on 6 January 2086. Taking into account 60 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £20,900 and £24,200 not including professional charges.
In 2011 we were approached by Dr Sarah Miller who, having completed a purpose-built apartment in Bletchley in January 1996. The dilemma was if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Similar homes in Bletchley with a long lease were worth £255,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease finished in 2097. Given that there were 71 years as a residual term we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including legals.