Bellingham leases on domestic properties are gradually losing value. Where your lease has about ninety years unexpired, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease falls below this level then you begin incurring an additional element called marriage value. Flat owners in Bellingham will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to check your eligibility. In certain cases you may not be entitled. There are also strict deadlines and procedures to comply with once the process is initiated so it’s best to be guided by a lawyer during the process.
Leasehold premises in Bellingham with over one hundred years outstanding 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 situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit 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. |
| Chelsea 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. |
| Halifax | Minimum 70 years from the date 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. |
Retaining 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 unsuccessful discussions with the landlord of her ground floor flat in Bellingham, Millie initiated the lease extension process just as her lease was nearing the crucial eighty-year mark. The lease extension was finalised in March 2012. The freeholder’s charges were restricted to slightly above 500 GBP.
In 2011 we were approached by Mr and Mrs. E Davies who, having completed a studio flat in Bellingham in September 2006. The question was if we could shed any light on how much (roughly) price would likely be to prolong the lease by a further 90 years. Similar flats in Bellingham with 100 year plus lease were worth £264,000. The mid-range ground rent payable was £60 billed monthly. The lease expired in 2079. Given that there were 53 years outstanding we estimated the compensation to the landlord to extend the lease to be within £37,100 and £42,800 not including costs.
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.