Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will usually be granted for a prescribed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Blythe Bridge. Clearly, the term of lease left shortens as time goes by. This may slip by relatively unnoticed when the flat or house needs to be sold or refinanced. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease. Eligible leaseholders in Blythe Bridge have the right to extend the lease for an additional 90 years in accordance with legislation. Please give due deliberation before putting off your Blythe Bridge lease extension. Holding off that expense now only increases the price you will ultimately have to pay to extend your lease
Leasehold properties in Blythe Bridge with over one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit 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. |
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service gives you increased control over the value of your Blythe Bridge leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Following unsuccessful discussions with the freeholder of her first floor apartment in Blythe Bridge, Phoebe commenced the lease extension process just as the lease was approaching the all-important 80-year deadline. The lease extension was finalised in January 2011. The landlord’s fees were kept to an absolute minimum.
Mr and Mrs. Y King bought a one bedroom flat in Blythe Bridge in September 2011. We are asked if we could approximate the premium would be for a 90 year lease extension. Similar premises in Blythe Bridge with a long lease were valued about £235,200. The mid-range amount of ground rent was £45 invoiced per annum. The lease lapsed on 12 March 2092. Given that there were 66 years unexpired we approximated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 plus legals.
In 2013 we were phoned by Mr W Peterson who, having completed a purpose-built flat in Blythe Bridge in May 1996. The question was if we could estimate the price would be for a ninety year extension to my lease. Comparative properties in Blythe Bridge with a long lease were worth £275,000. The mid-range ground rent payable was £55 collected annually. The lease concluded in 2103. Taking into account 77 years remaining we calculated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of legals.