The value of Blandfordum leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate materialy once the remaining term is less than 80 years
Leasehold residencies in Blandfordum with more than 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Regardless of whether you are a tenant or a landlord in Blandfordum,the lease extension solicitors that we work with will always be happy 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.
In the wake of 6 months of lengthy correspondence with the freeholder of her ground floor flat in Blandfordum, Sian initiated the lease extension process just as her lease was nearing the crucial eighty-year deadline. The lease extension was concluded in July 2014. The freeholder’s fees were negotiated to approximately six hundred pounds.
Mr and Mrs. Y André was assigned a lease of a basement apartment in Blandfordum in June 2008. The dilemma was if we could approximate the compensation to the landlord would likely be to extend the lease by 90 years. Comparative residencies in Blandfordum with an extended lease were worth £235,200. The average ground rent payable was £45 billed annually. The lease ended in 2091. Taking into account 66 years left we calculated the premium to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of costs.
Mr Nathan Carter took over the lease of a newly refurbished apartment in Blandfordum in October 2005. We are asked if we could shed any light on how much (roughly) premium would be for a ninety year extension to my lease. Similar properties in Blandfordum with a long lease were in the region of £280,000. The mid-range amount of ground rent was £55 billed quarterly. The lease ran out in 2102. Considering the 77 years unexpired we calculated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 plus professional charges.