Bellingham residential property held on a long lease is a depreciating asset as the leaseholder only owns the property for a period of years.
Leasehold premises in Bellingham with more than 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 landlord in Bellingham,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Bellingham valuers.
Last year Kyle, came seriously near to the 80-year threshold with the lease on his garden apartment in Bellingham. Having purchased his property 19 years previously, the length of the lease was of little bearing. by good luck, he realised he needed to take steps soon on a lease extension. Kyle arranged for a lease extension just ahead of time in September. Kyle and the freeholder via the managing agents eventually settled on an amount of £5,500 . If he failed to meet the deadline, the price would have increased by a minimum £1,100.
Last Summer we were e-mailed by Dr I Howard , who owned a one bedroom flat in Bellingham in February 2009. The question was if we could estimate the compensation to the landlord could be for a ninety year lease extension. Identical homes in Bellingham with a long lease were worth £280,000. The average ground rent payable was £55 billed monthly. The lease finished on 9 April 2102. Given that there were 77 years remaining we approximated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 plus fees.
An example of a Freehold Enfranchisement matter before the tribunal for a Bellingham property is 75 Woolstone Road in February 2012. the decision of the Tribunal was that the appropriate amount to be paid to purchase the freehold was the sum of £17,711 . This case affected 2 flats. The unexpired residue of the current lease was 68.28 and 158.