Blyth leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Most owners of residential leasehold property in Blyth enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Blyth you really ought to investigate if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
Leasehold premises in Blyth with over one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Blyth can be a difficult process. We recommend you secure professional help from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Blyth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Teddy, started to get near to the eighty-year mark with the lease on his one bedroom flat in Blyth. In buying his property twenty years ago, the unexpired term was of no relevance. As luck would have it, he realised he would soon be paying an inflated amount for Extending the lease. Teddy extended the lease just ahead of time in May. Teddy and the freeholder eventually agreed on an amount of £6,000 . If he failed to meet the deadline, the sum would have increased by at least £1,150.
Dr Evan Khan was assigned a lease of a one bedroom apartment in Blyth in November 2006. The question was if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Comparable flats in Blyth with 100 year plus lease were worth £260,200. The average ground rent payable was £65 invoiced monthly. The lease lapsed in 2092. Given that there were 66 years outstanding we calculated the premium to the freeholder for the lease extension to be within £15,200 and £17,600 exclusive of costs.
Last April we were called by Dr Joshua Torres , who owned a one bedroom apartment in Blyth in August 2000. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by a further 90 years. Comparative flats in Blyth with 100 year plus lease were in the region of £198,800. The mid-range ground rent payable was £55 billed annually. The lease came to a finish on 4 November 2081. Taking into account 55 years remaining we estimated the premium to the freeholder for the lease extension to be within £33,300 and £38,400 not including expenses.