There is no doubt about it a leasehold property in Blythe Bridge is a wasting asset as a result of the diminishing lease term. Where the residual term has, in excess of 100 years remaining then this decrease may be of little impact that being said there will become a stage when a lease has less than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary reason why you should extend the lease without delay. The majority of flat owners in Blythe Bridge will meet the qualifying criteria; that being said a conveyancer will be able to confirm whether you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold properties in Blythe Bridge with more than 100 years unexpired 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 upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| 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. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Blythe Bridge,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Blythe Bridge valuers.
Caleb owned a high value apartment in Blythe Bridge being sold with a lease of a few days over sixty years outstanding. Caleb on an informal basis spoke with his landlord being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £100 annually. Ordinarily, ground rent would not be due on a lease extension were Caleb to exercise his statutory right. Caleb obtained expert legal guidance and was able to make an informed judgement and deal with the matter and sell the flat.
Last Winter we were approach by Mr and Mrs. S Allen , who moved into a ground floor apartment in Blythe Bridge in March 2008. The question was if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by ninety years. Similar flats in Blythe Bridge with a long lease were in the region of £250,000. The average amount of ground rent was £50 billed annually. The lease ended in 2094. Given that there were 69 years left we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of expenses.
Mr and Mrs. E Brooks moved into a one bedroom apartment in Blythe Bridge in March 1997. The dilemma was if we could approximate the premium would likely be for a ninety year extension to my lease. Similar premises in Blythe Bridge with an extended lease were valued around £285,000. The average amount of ground rent was £55 billed annually. The lease concluded in 2105. Taking into account 80 years left we approximated the premium to the landlord for the lease extension to be within £12,400 and £14,200 plus professional charges.