Blandfordum leases on domestic deteriorating in value. Where your lease has about 90 years remaining, you should start thinking about a lease extension. If lease term falls under eighty years, you will then have to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Blandfordum will usually be legally entitled to a lease extension; however a solicitor should be able confirm your eligibility. In certain circumstances you may not qualify. There are also strict timetables and formalities to comply with once the process is triggered so it’s sensible to be guided by a lawyer during the process.
Leasehold residencies in Blandfordum with more than 100 years outstanding on the lease are often regarded as a ‘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 purchasing the freehold unless savings on ground rent and service charges justify it.
| 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. |
| 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. |
| Halifax | 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 be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
Irrespective of whether you are a tenant or a freeholder in Blandfordum,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Blandfordum valuers.
Daniel was the the leasehold proprietor of a conversion flat in Blandfordum on the market with a lease of just over 61 years outstanding. Daniel on an informal basis approached his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £125 annually. No ground rent would be due on a lease extension were Daniel to exercise his statutory right. Daniel obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and readily saleable.
In 2010 we were approached by Mr and Mrs. V Wright who, having was assigned a lease of a purpose-built flat in Blandfordum in June 1997. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Comparative flats in Blandfordum with an extended lease were valued about £250,000. The average amount of ground rent was £50 billed yearly. The lease came to a finish on 6 July 2095. Considering the 69 years as a residual term we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including professional charges.
In 2014 we were e-mailed by Ms F González who, having acquired a ground floor apartment in Blandfordum in March 2003. We are asked if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Comparable properties in Blandfordum with an extended lease were in the region of £290,000. The mid-range ground rent payable was £60 invoiced every twelve months. The lease ended in 2106. Taking into account 80 years unexpired we estimated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 not including expenses.