Blandfordum leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Legislation has been in place for sometime now which permits qualifying Blandfordum residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Blandfordum you really ought to see if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
Leasehold properties in Blandfordum with over 100 years left on the lease are sometimes 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 reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Blandfordum,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Blandfordum valuers.
Trailing lengthy correspondence with the landlord of her studio apartment in Blandfordum, Chelsea started the lease extension process just as her lease was nearing the crucial eighty-year deadline. The legal work completed in September 2008. The landlord’s charges were negotiated to less than 550 pounds.
Mr and Mrs. K Laurent purchased a purpose-built flat in Blandfordum in July 1996. We are asked if we could estimate the price would be for a ninety year lease extension. Identical premises in Blandfordum with an extended lease were valued around £215,600. The mid-range ground rent payable was £45 collected every twelve months. The lease elapsed on 18 November 2087. Considering the 62 years unexpired we estimated the premium to the freeholder for the lease extension to be between £18,100 and £20,800 exclusive of fees.
In 2010 we were contacted by Mr and Mrs. H Miller who, having took over the lease of a one bedroom apartment in Blandfordum in May 1999. We are asked if we could estimate the premium would likely be to extend the lease by 90 years. Comparative residencies in Blandfordum with an extended lease were valued about £265,000. The mid-range ground rent payable was £50 billed monthly. The lease lapsed on 11 February 2098. Taking into account 73 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of fees.