As the the remaining lease term of a Blandfordum domestic lease decreases so does its value and therefore the value of your property. If the lease has, in excess of 100 years to run then this decrease may be of little impact however there will become a point in time 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 main logic behind why you should consider extending sooner than later. Many flat owners in Blandfordum will meet the qualifying criteria; that being said a conveyancing solicitor should be able to confirm whether you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally accepted that a property with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as 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. |
| 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. |
| Godiva Mortgages | 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. |
The lawyers that we work with handle 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 lawyer we work with provide it.
Half a year ago Ethan, came very near to the 80-year mark with the lease on his one bedroom flat in Blandfordum. In buying his home two decades ago, the length of the lease was of no relevance. Thankfully, he realised he would imminently be paying way over the odds for a lease extension. Ethan was able to extend his lease just under the wire last September. Ethan and the landlord who owned the flat above ultimately settled on the final figure of £5,000 . If the lease had dropped lower than 80 years, the sum would have increased by at least £950.
Last Autumn we were phoned by Mr and Mrs. S Simon , who took over the lease of a ground floor apartment in Blandfordum in March 2001. We are asked if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Comparable residencies in Blandfordum with an extended lease were worth £220,400. The mid-range amount of ground rent was £45 billed monthly. The lease terminated on 16 May 2088. Taking into account 64 years unexpired we calculated the premium to the landlord to extend the lease to be within £15,200 and £17,600 not including costs.
In 2010 we were called by Mr and Mrs. W Morris who, having purchased a ground floor flat in Blandfordum in March 2009. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Identical premises in Blandfordum with an extended lease were valued about £270,000. The average amount of ground rent was £55 collected monthly. The lease came to a finish in 2099. Considering the 75 years unexpired we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus legals.