With a long leasehold premises in Blagdon, you effectively rent it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive notably once there are less than 80 years left. Leasehold owners in Blagdon with a lease nearing 81 years unexpired should seriously consider extending it as soon as possible. When a lease has fewer than eighty years remaining, under the current Act the landlord can calculate and demand a larger premium, assessed on a technical calculation, known as “marriage value” which is payable.
It is generally considered that a residential leasehold with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
The lawyers that we work with handle Blagdon 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 conveyancer we work with provide it.
Following unsuccessful negotiations with the freeholder of her leasehold apartment in Blagdon, Jessica initiated the lease extension process as the eighty year deadline was rapidly approaching. The lease extension completed in July 2007. The freeholder’s costs were negotiated to below six hundred GBP.
Last Spring we were called by Dr M Norbert , who completed a garden flat in Blagdon in June 1997. We are asked if we could shed any light on how much (roughly) premium could be to extend the lease by ninety years. Comparable properties in Blagdon with 100 year plus lease were in the region of £189,000. The mid-range amount of ground rent was £55 billed yearly. The lease elapsed on 24 October 2078. Taking into account 53 years outstanding we approximated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 plus fees.
Mr Blake Bailey purchased a purpose-built apartment in Blagdon in January 2008. The question was if we could estimate the compensation to the landlord would be to prolong the lease by ninety years. Comparable properties in Blagdon with a long lease were valued about £290,000. The average amount of ground rent was £45 invoiced annually. The lease expired in 2098. Considering the 73 years remaining we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including fees.