Blyth leases on domestic deteriorating in value. if your lease has approximately ninety years left, you should start considering the need for a lease extension. If lease term falls under eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Blyth will usually qualify for a lease extension; however a solicitor should be able check your eligibility. In certain circumstances you may not qualify. There are prescribed deadlines and formalities to comply with once the process has commenced so it’s wise to be guided by a conveyancing solicitor during the process.
It is generally considered that a property with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
The conveyancers that we work with handle Blyth 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.
Alexander was the the leasehold owner of a high value apartment in Blyth on the market with a lease of fraction over 72 years unexpired. Alexander informally contacted his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Alexander to invoke his statutory right. Alexander obtained expert advice and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
Last Summer we were e-mailed by Mr and Mrs. F Bertrand , who acquired a one bedroom flat in Blyth in September 2008. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year extension to my lease. Identical premises in Blyth with an extended lease were valued around £210,000. The average ground rent payable was £50 invoiced per annum. The lease ended on 10 November 2106. Considering the 80 years remaining we estimated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of fees.
In 2013 we were contacted by Mr G Rose who, having bought a recently refurbished flat in Blyth in March 2008. The dilemma was if we could shed any light on how much (roughly) price would be to prolong the lease by 90 years. Comparative properties in Blyth with a long lease were in the region of £275,000. The average ground rent payable was £45 billed yearly. The lease ran out on 14 March 2095. Considering the 69 years unexpired we approximated the premium to the landlord for the lease extension to be between £12,400 and £14,200 plus expenses.