It’s an underpublicised certainty that a Bellingham residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Bellingham property market.Where your lease has approximately ninety years left, you need to start considering a lease extension. If lease term falls below eighty 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. The marriage fee is the amount of additional value that a lease extension will add the property Most flat owners in Bellingham will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm whether you are eligibility. In some situations you may not be entitled. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
Leasehold properties in Bellingham with in excess of 100 years unexpired 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 premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Bellingham,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 Bellingham valuers.
Caleb was the the leasehold proprietor of a studio apartment in Bellingham on the market with a lease of a few days over 59 years outstanding. Caleb on an informal basis spoke with his freeholder a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £50 per annum. No ground rent would be payable on a lease extension were Caleb to invoke his statutory right. Caleb obtained expert advice and secured satisfactory resolution without going to tribunal and ending up with a market value flat.
Last Winter we were called by Mr and Mrs. K Alexander , who bought a garden apartment in Bellingham in September 2004. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Identical premises in Bellingham with a long lease were valued about £200,800. The average ground rent payable was £65 billed yearly. The lease concluded in 2086. Taking into account 60 years remaining we estimated the compensation to the freeholder for the lease extension to be within £20,900 and £24,200 not including 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 unexpired lease term was 68.28 and 158.