Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will usually be granted for a set period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Bellingham. Inevitably, the period of lease left reduces over time. This may pass by relatively unnoticed when the residence needs to be disposed of or re-mortgaged. The fewer the years remaining the less it is worth and the more it will cost to obtain a lease extension. Eligible leaseholders in Bellingham have the right to extend the lease for an additional ninety years in accordance with statute. Please give due attention before putting off your Bellingham lease extension. Putting off that expense now simply increases the price you will eventually incur to extend your lease
Leasehold premises in Bellingham with in excess of one hundred years left on the lease are sometimes 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 upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Birmingham Midshires | |
| Coventry Building Society | |
| National Westminster Bank | |
| Yorkshire Building Society |
The lawyers that we work with procure 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.
Two years ago Eliot, came very near to the 80-year mark with the lease on his purpose- built apartment in Bellingham. Having purchased his flat two decades ago, the length of the lease was of little relevance. Thankfully, he became aware that he needed to take steps soon on a lease extension. Eliot was able to extend his lease just in the nick of time in September. Eliot and the landlord who owned the flat above in the end settled on sum of £6,000 . If the lease had dipped below 80 years, the premium would have increased by a minimum £900.
Last Summer we were phoned by Mr R Scott , who acquired a first floor flat in Bellingham in March 2005. The dilemma was if we could approximate the price would likely be to prolong the lease by a further 90 years. Comparative homes in Bellingham with 100 year plus lease were in the region of £261,600. The mid-range ground rent payable was £60 billed yearly. The lease ran out on 19 April 2078. Considering the 52 years unexpired we estimated the premium to the freeholder for the lease extension to be within £39,000 and £45,000 exclusive of legals.
An example of a Freehold Enfranchisement decision for a Bellingham property 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 number of years remaining on the existing lease(s) was 68.28 and 158.