There is no doubt about it a leasehold property in Bellingham is a wasting asset as a result of the shortening lease. If the residual term has, in excess of one hundred years to run then this decrease may be fractional nevertheless there will become a stage when a lease has under than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease sooner than later. Many flat owners in Bellingham will meet the qualifying criteria; however a lawyer can confirm whether you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold premises in Bellingham with over one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Using our service gives you better control over the value of your Bellingham leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Following protracted negotiations with the freeholder of her ground floor flat in Bellingham, Amelia commenced the lease extension process just as her lease was nearing the critical 80-year threshold. The legal work completed in June 2015. The landlord’s costs were restricted to slightly above 450 pounds.
Ms Catherine López purchased a ground floor flat in Bellingham in October 2007. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparable residencies in Bellingham with 100 year plus lease were worth £232,800. The average ground rent payable was £45 collected annually. The lease ended on 2 January 2091. Having 65 years remaining we calculated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of expenses.
An example of a Freehold Enfranchisement case for a Bellingham residence is 75 Woolstone Road in February 2012. the decision of the Tribunal was that the appropriate amount to be paid to purchase the freehold was the sum of £17,711 . This case affected 2 flats. The unexpired residue of the current lease was 68.28 and 158.