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 becomes more expensive. The majority of owners of residential leasehold property in Blandfordum enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Blandfordum you must check if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| 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. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The lawyers that we work with undertake Blandfordum lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Off the back of unsuccessful negotiations with the freeholder of her basement apartment in Blandfordum, Samantha started the lease extension process as the eighty year threshold was fast nearing. The transaction was concluded in May 2009. The freeholder’s fees were kept to an absolute minimum.
In 2014 we were called by Mr Harry King who, having acquired a ground floor apartment in Blandfordum in September 2011. We are asked if we could estimate the premium would likely be for a ninety year extension to my lease. Identical flats in Blandfordum with a long lease were valued around £275,000. The mid-range amount of ground rent was £55 invoiced monthly. The lease ended in 2102. Taking into account 76 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus fees.
Last Summer we were e-mailed by Mr B Brooks , who was assigned a lease of a basement apartment in Blandfordum in November 2008. We are asked if we could shed any light on how much (roughly) price could be to prolong the lease by ninety years. Similar homes in Blandfordum with a long lease were worth £176,200. The average ground rent payable was £65 invoiced quarterly. The lease elapsed in 2082. Given that there were 56 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £29,500 and £34,000 not including expenses.