The closer a residential lease in Blandfordum gets to zero years unexpired, the more it reduces the value of the property. If the lease has, beyond 125 years to run then this decrease may be negligible however there will become a stage when a lease has under than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should consider extending without delay. The majority of flat owners in Blandfordum will qualify for this right; however a conveyancing solicitor can advise if you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold premises in Blandfordum with more than 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
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 conveyancing solicitor we work with provide it.
Lewis owned a high value flat in Blandfordum being marketed with a lease of just over sixty years remaining. Lewis informally contacted his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £100 per annum. No ground rent would be payable on a lease extension were Lewis to invoke his statutory right. Lewis procured expert advice and was able to make a more informed judgement and deal with the matter and sell the flat.
Mr and Mrs. J Turner bought a ground floor apartment in Blandfordum in August 2002. The dilemma was if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Identical homes in Blandfordum with a long lease were valued about £264,000. The mid-range ground rent payable was £60 billed yearly. The lease came to a finish on 5 November 2079. Taking into account 53 years outstanding we calculated the premium to the landlord to extend the lease to be within £37,100 and £42,800 not including costs.
Last Christmas we were e-mailed by Ms Tia Parker , who acquired a ground floor flat in Blandfordum in August 2000. The question was if we could approximate the compensation to the landlord could be for a 90 year lease extension. Similar premises in Blandfordum with a long lease were valued around £225,400. The mid-range amount of ground rent was £45 collected quarterly. The lease terminated in 2090. Taking into account 64 years left we approximated the premium to the freeholder to extend the lease to be within £15,200 and £17,600 not including professional charges.