Bloxham leases on domestic properties are gradually losing value. if your lease has in the region of 90 years remaining, you should start thinking about a lease extension. If lease term dips under eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Bloxham will mostly qualify for a lease extension; however It would be wise to check with a lawyer to check if you qualify. In some situations you may not qualify. There are prescribed deadlines and formalities to follow once the process is triggered so it’s prudent to be guided by a conveyancer during the process.
Leasehold residencies in Bloxham with in excess of one hundred years outstanding 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 situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | 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. |
| 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 Bloxham leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following protracted discussions with the freeholder of her first floor apartment in Bloxham, Jennifer commenced the lease extension process as the eighty year deadline was quickly advancing. The lease extension completed in April 2010. The freeholder’s fees were negotiated to approximately 500 GBP.
In 2009 we were contacted by Mr and Mrs. C Mitchell who, having bought a basement apartment in Bloxham in February 1999. The question was if we could approximate the price would likely be for a 90 year extension to my lease. Identical residencies in Bloxham with an extended lease were worth £210,600. The average amount of ground rent was £45 collected annually. The lease termination date was on 6 June 2087. Considering the 62 years outstanding we calculated the premium to the landlord for the lease extension to be within £18,100 and £20,800 not including expenses.
In 2012 we were approached by Mr and Mrs. T Robinson who, having completed a garden apartment in Bloxham in September 2000. The question was if we could estimate the premium could be to extend the lease by 90 years. Comparative residencies in Bloxham with 100 year plus lease were valued around £260,000. The mid-range amount of ground rent was £50 invoiced annually. The lease ran out in 2098. Having 73 years left we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of legals.