When it comes to domestic leasehold premises in Blagdon, you are actually purchasing an entitlement to live in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive particularly when there are less than 80 years left. Anyone in Blagdon with a lease drawing near to 81 years left should seriously consider extending it as soon as possible. Once the lease term has fewer than eighty years remaining, under the current statute the freeholder is entitled to calculate and charge a greater premium, assessed on a technical computation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | 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. |
Engaging our service will provide you increased control over the value of your Blagdon leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
After protracted negotiations with the freeholder of her leasehold apartment in Blagdon, Katherine commenced the lease extension process just as the lease was coming close to the all-important eighty-year deadline. The legal work was finalised in May 2012. The landlord’s fees were kept to an absolute minimum.
Mr and Mrs. C Walker purchased a recently refurbished flat in Blagdon in February 1995. The question was if we could approximate the compensation to the landlord could be to extend the lease by an additional years. Comparative homes in Blagdon with 100 year plus lease were in the region of £280,000. The mid-range amount of ground rent was £45 billed yearly. The lease came to a finish on 16 November 2095. Given that there were 69 years outstanding we estimated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of expenses.
Mr and Mrs. T Bell bought a studio flat in Blagdon in September 2012. We are asked if we could approximate the premium would be to prolong the lease by a further 90 years. Similar premises in Blagdon with 100 year plus lease were in the region of £216,000. The mid-range ground rent payable was £60 billed annually. The lease end date was in 2084. Taking into account 58 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 exclusive of legals.