With a residential leasehold property in Blyth, you are actually purchasing a right to reside in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately greater especially when there are less than eighty years left. Anyone in Blyth with a lease approaching 81 years unexpired should seriously consider extending it as soon as possible. Once the lease term has less than eighty years remaining, under the current statute the landlord can calculate and demand a larger amount, assessed on a technical multiplication, known as “marriage value” which is due.
Leasehold premises in Blyth with over 100 years outstanding on the lease are often regarded as a ‘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 buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Blyth,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Blyth valuers.
Twenty four months ago Leon, started to get close to the 80-year mark with the lease on his purpose- built flat in Blyth. Having bought his home 18 years previously, the unexpired term was of no bearing. Fortunately, he noticed he needed to take steps soon on Extending the lease. Leon extended the lease at the eleventh hour last August. Leon and the freeholder in the end agreed on a premium of £5,000 . If he not met the deadline, the premium would have escalated by at least £850.
Last year we were e-mailed by Dr Rachael Jones , who was assigned a lease of a garden flat in Blyth in June 2009. The dilemma was if we could estimate the premium would be for a 90 year lease extension. Comparative homes in Blyth with a long lease were worth £285,000. The mid-range ground rent payable was £45 invoiced monthly. The lease lapsed in 2096. Given that there were 71 years left we calculated the premium to the landlord to extend the lease to be between £12,400 and £14,200 plus professional charges.
Mr and Mrs. M González acquired a basement flat in Blyth in June 2009. The dilemma was if we could shed any light on how much (roughly) premium would be to extend the lease by ninety years. Similar flats in Blyth with 100 year plus lease were in the region of £225,800. The mid-range ground rent payable was £60 collected yearly. The lease terminated in 2085. Taking into account 60 years as a residual term we calculated the premium to the landlord for the lease extension to be between £23,800 and £27,400 plus costs.