The only way is down when it comes to Blandford Forum lease terms. Blandford Forum properties that have a residual term less than than eighty years will reduce in market price at a rapid rate, and the cost to extend your lease will go up.
Leasehold properties in Blandford Forum with more than 100 years left on the lease are often 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 to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
Lease extensions in Blandford Forum can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and surveyor 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 in-depth market knowledge procuring Blandford Forum lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Omar, came perilously close to the 80-year mark with the lease on his garden flat in Blandford Forum. In buying his property two decades ago, the length of the lease was of little significance. Fortunately, he noticed he needed to take steps soon on a lease extension. Omar was able to extend his lease at the eleventh hour in May. Omar and the landlord who owned the flat above in the end settled on an amount of £5,500 . If he had missed the deadline, the premium would have increased by at least £1,150.
Dr Niamh Bernard purchased a studio flat in Blandford Forum in August 2006. We are asked if we could shed any light on how much (roughly) price could be to prolong the lease by 90 years. Similar properties in Blandford Forum with 100 year plus lease were in the region of £243,000. The mid-range amount of ground rent was £65 billed quarterly. The lease lapsed on 7 February 2089. Considering the 63 years left we estimated the compensation to the freeholder for the lease extension to be between £20,000 and £23,000 plus fees.
Last Christmas we were contacted by Dr M García , who purchased a newly refurbished apartment in Blandford Forum in January 2003. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by ninety years. Identical flats in Blandford Forum with a long lease were worth £181,600. The mid-range ground rent payable was £55 collected yearly. The lease ran out in 2078. Given that there were 52 years unexpired we approximated the compensation to the landlord to extend the lease to be between £30,400 and £35,200 exclusive of expenses.