When it comes to long leasehold property in Blakeney, you are actually buying an entitlement to live in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should think about extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably when there are fewer than eighty years remaining. Residents in Blakeney with a lease drawing near to 81 years left should seriously think of extending it as soon as possible. When the lease term has below 80 years remaining, under the relevant legislation the freeholder can calculate and demand a greater amount, based on a technical calculation, known as “marriage value” which is payable.
Leasehold premises in Blakeney with in excess of one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
Retaining our service will provide you increased control over the value of your Blakeney leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Lucas owned a conversion flat in Blakeney on the market with a lease of a few days over 59 years left. Lucas informally contacted his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Lucas to exercise his statutory right. Lucas obtained expert advice and secured satisfactory resolution without resorting to tribunal and ending up with a market value flat.
Mr and Mrs. N Cox owned a one bedroom flat in Blakeney in April 1998. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by 90 years. Similar homes in Blakeney with an extended lease were valued about £242,600. The mid-range amount of ground rent was £45 invoiced yearly. The lease lapsed on 13 January 2092. Having 67 years unexpired we calculated the compensation to the landlord to extend the lease to be between £11,400 and £13,200 plus expenses.
Last September we were called by Dr Finley Edwards , who took over the lease of a basement flat in Blakeney in August 2012. We are asked if we could estimate the premium would likely be to extend the lease by ninety years. Comparable premises in Blakeney with a long lease were valued around £280,000. The average amount of ground rent was £55 billed annually. The lease ran out in 2103. Having 78 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of expenses.