It’s a harsh truth that a Blagdon residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Blagdon property market.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. If the number of years remaining slips under 80 years, you will then be required to pay 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 The majority of flat owners in Blagdon will be able to extend under the legislation; however a lawyer will be able to clarify whether you are eligibility. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the process.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| 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. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Leeds Building Society | 85 years remaining from the start 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. |
Irrespective of whether you are a tenant or a landlord in Blagdon,the lease extension solicitors 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 Blagdon valuers.
Leo was the the leasehold owner of a conversion flat in Blagdon on the market with a lease of fraction over 72 years outstanding. Leo on an informal basis approached his landlord a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £50 yearly. No ground rent would be due on a lease extension were Leo to exercise his statutory right. Leo obtained expert advice and was able to make an informed decision and handle with the matter and readily saleable.
In 2010 we were approached by Mr and Mrs. G Watson who, having completed a studio apartment in Blagdon in March 1997. We are asked if we could approximate the price would be to prolong the lease by a further 90 years. Similar premises in Blagdon with an extended lease were worth £205,000. The mid-range amount of ground rent was £50 collected monthly. The lease expired on 14 March 2105. Having 79 years as a residual term we calculated the premium to the landlord to extend the lease to be within £8,600 and £9,800 not including costs.
In 2011 we were contacted by Ms Naomi Rodríguez who, having acquired a recently refurbished flat in Blagdon in January 1999. The dilemma was if we could shed any light on how much (roughly) premium could be for a ninety year lease extension. Comparative residencies in Blagdon with 100 year plus lease were valued about £275,000. The mid-range amount of ground rent was £65 billed yearly. The lease finished in 2094. Having 68 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of legals.