Bedlington leases on domestic deteriorating in value. if your lease has approximately 90 years remaining, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease drops below this level then you begin incurring an additional element called marriage value. Leasehold owners in Bedlington will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancer to check if you qualify. In certain cases you may not qualify. There are also strict deadlines and procedures to follow once the process is initiated so it’s best to be guided by a conveyancer during the process.
It is generally considered that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | 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 increased control over the value of your Bedlington leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing unsuccessful correspondence with the freeholder of her first floor flat in Bedlington, Holly initiated the lease extension process as the eighty year mark was quickly coming. The lease extension was finalised in October 2012. The freeholder’s charges were kept to an absolute minimum.
Last month we were called by Mr and Mrs. N Alexander , who moved into a ground floor flat in Bedlington in April 2009. The question was if we could estimate the price would likely be for a 90 year lease extension. Similar homes in Bedlington with a long lease were worth £168,800. The average amount of ground rent was £60 billed per annum. The lease finished on 25 April 2081. Having 55 years remaining we estimated the compensation to the freeholder for the lease extension to be between £30,400 and £35,200 plus fees.
Dr Cameron Patel owned a first floor flat in Bedlington in November 2002. We are asked if we could approximate the premium would be for a ninety year lease extension. Similar properties in Bedlington with a long lease were in the region of £235,200. The average ground rent payable was £45 billed yearly. The lease expired on 6 July 2092. Having 66 years remaining we approximated the premium to the landlord for the lease extension to be between £12,400 and £14,200 plus costs.