With a long leasehold property in Blakedown, you effectively rent it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may consider extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive especially when there are fewer than eighty years remaining. Leasehold owners in Blakedown with a lease nearing 81 years unexpired should seriously consider extending it sooner rather than later. Once the lease term has below 80 years left, under the relevant Act the landlord is entitled to calculate and demand a larger amount, based on a technical computation, strangely termed as “marriage value” which is due.
Leasehold residencies in Blakedown with in excess of one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Lease extensions in Blakedown can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Blakedown lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to lengthy negotiations with the freeholder of her garden flat in Blakedown, Robyn commenced the lease extension process just as her lease was coming close to the all-important 80-year deadline. The legal work completed in September 2009. The freeholder’s charges were kept to an absolute minimum.
Last month we were e-mailed by Dr Edward Murphy , who was assigned a lease of a garden flat in Blakedown in September 1996. The question was if we could shed any light on how much (approximately) premium would likely be for a ninety year lease extension. Comparable premises in Blakedown with an extended lease were worth £250,000. The average ground rent payable was £50 billed quarterly. The lease expired in 2094. Taking into account 69 years unexpired we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of legals.
Last month we were contacted by Dr U Gray , who acquired a ground floor flat in Blakedown in July 2003. The dilemma was if we could approximate the premium could be to prolong the lease by ninety years. Similar properties in Blakedown with an extended lease were in the region of £285,000. The average amount of ground rent was £55 collected every twelve months. The lease elapsed in 2105. Given that there were 80 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 not including costs.