Owning a flat usually means owning a lease of the property, which has a set term of years. The lease will normally be granted for a set period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Blagdon. Inevitably, the term of lease remaining reduces as time goes by. This is often overlooked and only raises itself as an issue when the residence has to be disposed of or refinanced. The fewer the years remaining the less it is worth and the more expensive it will be to procure a lease extension. Qualifying leaseholders in Blagdon have the right to extend the lease for an additional 90 years under the 1993 Leasehold Reform Act. Do give careful attention before delaying your Blagdon lease extension. Holding off the cost now simply increases the price you will eventually incur to extend your lease
It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Birmingham Midshires | |
| Halifax | |
| Nationwide Building Society | |
| The Mortgage Works |
Irrespective of whether you are a tenant or a freeholder in Blagdon,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Blagdon valuers.
Felix owned a high value flat in Blagdon being marketed with a lease of a little over 59 years outstanding. Felix on an informal basis contacted his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Felix to exercise his statutory right. Felix obtained expert legal guidance and was able to make an informed judgement and deal with the matter and readily saleable.
Ms O Martinez owned a garden apartment in Blagdon in February 1996. The dilemma was if we could estimate the premium would be to prolong the lease by an additional years. Similar flats in Blagdon with a long lease were worth £267,600. The average ground rent payable was £65 invoiced annually. The lease terminated on 15 April 2093. Taking into account 67 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £14,300 and £16,400 plus professional charges.
In 2013 we were contacted by Mr I Gray who, having was assigned a lease of a basement flat in Blagdon in July 2001. We are asked if we could approximate the premium would likely be to extend the lease by 90 years. Comparative homes in Blagdon with an extended lease were valued about £206,200. The mid-range ground rent payable was £60 collected per annum. The lease finished in 2082. Considering the 56 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 not including legals.