As the length of the unexpired term of a Bletchley residential lease lessens so does its value and therefore the value of your property. If the lease has, over 100 years to run then this decrease may be negligible that being said there will become a stage when a lease has fewer than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should consider extending sooner as opposed to later. Many flat owners in Bletchley will qualify for this right; nevertheless a lawyer can advise whether you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is generally considered that a property with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Birmingham Midshires | Minimum 70 years from the date 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. |
Engaging our service will provide you better control over the value of your Bletchley leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
After protracted correspondence with the freeholder of her leasehold flat in Bletchley, Courtney initiated the lease extension process just as her lease was coming close to the crucial 80-year deadline. The legal work was concluded in July 2009. The landlord’s costs were kept to an absolute minimum.
Ms K Pérez was assigned a lease of a ground floor apartment in Bletchley in April 2011. The dilemma was if we could approximate the compensation to the landlord could be for a 90 year lease extension. Comparative flats in Bletchley with a long lease were worth £242,600. The average ground rent payable was £45 billed per annum. The lease finished on 19 February 2092. Considering the 67 years unexpired we calculated the compensation to the landlord to extend the lease to be between £11,400 and £13,200 exclusive of expenses.
Ms Holly Hernández acquired a garden apartment in Bletchley in October 2003. The question was if we could estimate the premium could be for a 90 year extension to my lease. Comparative premises in Bletchley with a long lease were worth £280,000. The mid-range ground rent payable was £55 collected annually. The lease ran out on 19 March 2103. Having 78 years remaining we approximated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 plus professional charges.