When it comes to residential leasehold property in Bellingham, you are in fact renting it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should consider a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are fewer than 80 years remaining. Leasehold owners in Bellingham with a lease drawing near to 81 years unexpired should seriously think of extending it without delay. When a lease has under 80 years left, under the relevant statute the landlord is entitled to calculate and demand a greater premium, based on a technical multiplication, known as “marriage value” which is payable.
Leasehold premises in Bellingham with over 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with handle Bellingham lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Matthew owned a high value apartment in Bellingham on the market with a lease of a few days over 72 years left. Matthew on an informal basis spoke with his landlord a well known Bristol-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Matthew to invoke his statutory right. Matthew obtained expert advice and secured an acceptable deal without going to tribunal and readily saleable.
In 2012 we were called by Dr Callum Hernández who, having completed a newly refurbished flat in Bellingham in September 2012. The dilemma was if we could shed any light on how much (roughly) premium would be for a 90 year extension to my lease. Similar premises in Bellingham with 100 year plus lease were valued about £225,400. The mid-range ground rent payable was £45 collected monthly. The lease came to a finish on 24 February 2090. Given that there were 64 years unexpired we estimated the premium to the landlord for the lease extension to be within £15,200 and £17,600 plus expenses.
An example of a Freehold Enfranchisement matter before the tribunal 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 was in relation to 2 flats. The remaining number of years on the lease was 68.28 and 158.