The rule of thumb is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Bletchley have the legal entitlement to extend the lease for an additional 90 years in accordance with Leasehold Reform legislation. Do give careful consideration before delaying your Bletchley lease extension. Putting off the costs now simply increases the amount you will eventually be required to pay for a lease extension.
It is conventional wisdom that a residential leasehold with over 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 many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Engaging 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.
Off the back of unsuccessful correspondence with the landlord of her ground floor apartment in Bletchley, Mia started the lease extension process as the eighty year mark was fast nearing. The transaction was finalised in October 2015. The freeholder’s charges were kept to an absolute minimum.
In 2013 we were approached by Mrs Freya Adams who, having completed a garden flat in Bletchley in November 2009. The dilemma was if we could approximate the price would likely be to prolong the lease by ninety years. Similar flats in Bletchley with a long lease were in the region of £227,800. The mid-range amount of ground rent was £45 invoiced quarterly. The lease ended in 2091. Considering the 65 years unexpired we estimated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 not including costs.
In 2009 we were called by Mr and Mrs. I Díaz who, having moved into a ground floor flat in Bletchley in October 2007. The dilemma was if we could estimate the compensation to the landlord could be to prolong the lease by a further 90 years. Identical homes in Bletchley with 100 year plus lease were worth £275,000. The average ground rent payable was £55 collected quarterly. The lease expired on 12 January 2102. Having 76 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of costs.