Blandfordum leases on domestic properties are gradually losing value. Where your lease has about ninety years remaining, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease drops below this level then you start incurring an additional element called marriage value. Leasehold owners in Blandfordum will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancer to confirm if you qualify. In some situations you may not qualify. There are prescribed timetables and procedures to follow once the process has commenced so it’s best to be guided by a conveyancing solicitor during the process.
Leasehold properties in Blandfordum with more than 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
|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.|
|Halifax||Minimum 70 years from the date of the mortgage.|
|Leeds Building Society||85 years remaing from the start of the mortgage.|
|Lloyds TSB Scotland||Mortgage term plus 30 years subject to an overall minimum term of 70 years|
|Virgin||85 years at the time of completion. If it's less, we require it to be extended on or before completion.|
Retaining our service will provide you better control over the value of your Blandfordum leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Aarav owned a high value apartment in Blandfordum being sold with a lease of just over fifty eight years remaining. Aarav on an informal basis contacted his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £125 yearly. Ordinarily, ground rent would not be due on a lease extension were Aarav to exercise his statutory right. Aarav procured expert legal guidance and secured an acceptable resolution informally and readily saleable.
In 2010 we were e-mailed by Ms E Baker who, having acquired a one bedroom apartment in Blandfordum in July 2006. The dilemma was if we could approximate the price would be for a 90 year extension to my lease. Comparative homes in Blandfordum with a long lease were worth £285,000. The average amount of ground rent was £55 invoiced every twelve months. The lease terminated in 2101. Having 80 years left we calculated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 plus legals.
In 2011 we were e-mailed by Mr and Mrs. L Richardson who, having owned a newly refurbished flat in Blandfordum in November 2000. We are asked if we could estimate the premium would likely be to prolong the lease by ninety years. Comparable properties in Blandfordum with 100 year plus lease were worth £200,800. The average amount of ground rent was £65 collected yearly. The lease expired on 9 September 2081. Given that there were 60 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £20,900 and £24,200 not including fees.