There is no doubt about it a leasehold flat or house in Blandford Forum is a wasting asset as a result of the shortening lease. Where the lease has, more than 100 years to run then this decrease may be fractional that being said there will become a stage when a lease has fewer than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should consider extending sooner as opposed to later. Most flat owners in Blandford Forum will meet the qualifying criteria; nevertheless a conveyancer should be able to advise whether you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold properties in Blandford Forum with in excess of 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify 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. |
| 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. |
| 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. |
Using our service gives you enhanced control over the value of your Blandford Forum leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Daniel owned a high value apartment in Blandford Forum on the market with a lease of a little over 72 years remaining. Daniel informally spoke with his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £150 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Daniel to invoke his statutory right. Daniel obtained expert advice and secured an acceptable resolution informally and readily saleable.
Mr and Mrs. T Evans acquired a purpose-built apartment in Blandford Forum in October 2004. The question was if we could approximate the compensation to the landlord could be to prolong the lease by a further 90 years. Similar properties in Blandford Forum with a long lease were worth £295,000. The average amount of ground rent was £50 billed quarterly. The lease came to a finish on 17 August 2101. Having 75 years outstanding we approximated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 plus professional charges.
In 2011 we were called by Mr S Fournier who, having owned a newly refurbished flat in Blandford Forum in May 2000. We are asked if we could approximate the premium would likely be for a 90 year lease extension. Comparative flats in Blandford Forum with 100 year plus lease were valued around £250,400. The average ground rent payable was £65 collected yearly. The lease came to a finish in 2090. Having 64 years left we estimated the premium to the freeholder to extend the lease to be within £19,000 and £22,000 exclusive of expenses.