It’s an underpublicised truth that a Bellingham residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Bellingham property prices.Once your lease nears 85ish years, you need to start thinking about a lease extension. If the number of years remaining slips under 80 years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Bellingham will be able to extend under the legislation; however a lawyer will be able to confirm whether you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer throughout the formalities.
It is generally considered that a residential leasehold with over one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, 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 better control over the value of your Bellingham leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Liam was the the leasehold owner of a 2 bedroom apartment in Bellingham being marketed with a lease of a few days over 61 years remaining. Liam on an informal basis approached his landlord being a well known Bristol-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Liam to invoke his statutory right. Liam obtained expert advice and was able to make an informed judgement and handle with the matter and readily saleable.
Last Autumn we were e-mailed by Mr and Mrs. D Rivera , who was assigned a lease of a garden apartment in Bellingham in September 2008. The dilemma was if we could estimate the premium could be for a 90 year extension to my lease. Identical properties in Bellingham with a long lease were worth £250,000. The mid-range amount of ground rent was £50 collected quarterly. The lease elapsed on 28 November 2094. Taking into account 69 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including professional charges.
An example of a Freehold Enfranchisement case for a Bellingham premises 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.