The value of Bedlington leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate significantly once the unexpired lease term is less than eighty years
Leasehold properties in Bedlington with more than one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service gives you increased control over the value of your Bedlington leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Cameron was the the leasehold proprietor of a conversion flat in Bedlington being sold with a lease of just over sixty years unexpired. Cameron informally contacted his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £125 per annum. No ground rent would be payable on a lease extension were Cameron to invoke his statutory right. Cameron obtained expert legal guidance and secured an acceptable resolution informally and readily saleable.
Mr Evan Mercier was assigned a lease of a one bedroom apartment in Bedlington in May 1995. We are asked if we could approximate the premium would be for a ninety year lease extension. Comparative premises in Bedlington with 100 year plus lease were valued about £256,600. The average amount of ground rent was £60 collected yearly. The lease finished in 2077. Having 52 years left we estimated the compensation to the landlord for the lease extension to be between £39,000 and £45,000 plus legals.
Mr Daniel Sánchez took over the lease of a purpose-built flat in Bedlington in February 2003. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year lease extension. Identical residencies in Bedlington with an extended lease were in the region of £218,000. The average amount of ground rent was £45 collected every twelve months. The lease lapsed on 25 May 2088. Considering the 63 years unexpired we approximated the premium to the landlord to extend the lease to be between £17,100 and £19,800 exclusive of expenses.