Unfortunately that a Blandfordum residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Blandfordum property market.Where your lease has approximately ninety years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under 80 years - otherwise a higher premium will be payable. The majority of leasehold owners in Blandfordum will be able to extend under the legislation; however a lawyer will be able to clarify if you are eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process is instigated and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
Leasehold properties in Blandfordum with over 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 situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Blandfordum,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Blandfordum valuers.
Following lengthy correspondence with the freeholder of her purpose-built flat in Blandfordum, Shannon initiated the lease extension process as the eighty year threshold was quickly coming. The transaction completed in May 2008. The freeholder’s costs were kept to an absolute minimum.
In 2009 we were phoned by Mr D López who, having completed a recently refurbished apartment in Blandfordum in August 1999. The question was if we could approximate the compensation to the landlord would likely be to prolong the lease by an additional years. Comparable properties in Blandfordum with a long lease were worth £191,000. The average ground rent payable was £65 invoiced yearly. The lease elapsed on 20 November 2083. Having 58 years outstanding we estimated the premium to the freeholder to extend the lease to be within £23,800 and £27,400 plus costs.
Last Spring we were approach by Mr and Mrs. R Hall , who acquired a first floor apartment in Blandfordum in January 2012. The question was if we could approximate the price could be for a 90 year lease extension. Comparative residencies in Blandfordum with an extended lease were worth £250,000. The average ground rent payable was £50 collected every twelve months. The lease elapsed on 11 July 2094. Taking into account 69 years as a residual term we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.