Bedlington leases on domestic properties are gradually losing value. Where your lease has in the region of ninety years remaining, you should start considering the need for a lease extension. If lease term falls under eighty years, you will then have to pay 50% of the property's 'marriage value' on top of the standard cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Bedlington will usually qualify for a lease extension; however a solicitor should be able check your eligibility. In certain situations you may not be entitled. There are also strict timetables and steps to follow once the process has started so it’s best to be guided by a lawyer during the process.
Leasehold premises in Bedlington with more than 100 years left on the lease are sometimes regarded as a ‘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 to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | 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. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Bedlington,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Bedlington valuers.
Max owned a 2 bedroom flat in Bedlington being sold with a lease of fraction over 61 years outstanding. Max informally spoke with his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Max to exercise his statutory right. Max obtained expert legal guidance and secured an acceptable deal without resorting to tribunal and ending up with a market value flat.
In 2010 we were phoned by Mr and Mrs. V King who, having owned a basement flat in Bedlington in April 2011. We are asked if we could shed any light on how much (roughly) price would be to extend the lease by 90 years. Similar properties in Bedlington with 100 year plus lease were in the region of £265,000. The average ground rent payable was £50 collected yearly. The lease came to a finish on 21 October 2100. Taking into account 74 years unexpired we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus legals.
Last Christmas we were phoned by Mr Freddie Thompson , who owned a ground floor flat in Bedlington in November 2004. We are asked if we could estimate the price could be to prolong the lease by an additional years. Similar residencies in Bedlington with a long lease were in the region of £166,400. The average amount of ground rent was £60 billed quarterly. The lease came to a finish on 14 October 2080. Considering the 54 years unexpired we approximated the premium to the landlord for the lease extension to be between £32,300 and £37,400 plus expenses.