When it comes to domestic leasehold property in Bellingham, you are actually buying an entitlement to live in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive notably when there are less than 80 years remaining. Anyone in Bellingham with a lease drawing near to 81 years unexpired should seriously consider extending it without delay. Once a lease has fewer than 80 years remaining, under the current statute the landlord is entitled to calculate and demand a larger amount, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold premises in Bellingham with over one hundred years outstanding 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 premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service gives you better control over the value of your Bellingham leasehold, as your property will be more valuable and marketable in respect of lease length should you want 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.
Zachary was the the leasehold proprietor of a high value apartment in Bellingham being sold with a lease of fraction over fifty eight years outstanding. Zachary on an informal basis contacted his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 per annum. No ground rent would be due on a lease extension were Zachary to invoke his statutory right. Zachary procured expert legal guidance and secured an acceptable resolution without resorting to tribunal and readily saleable.
Last October we were e-mailed by Ms E Sánchez , who moved into a studio flat in Bellingham in July 2011. The dilemma was if we could approximate the compensation to the landlord could be to prolong the lease by 90 years. Identical properties in Bellingham with 100 year plus lease were worth £246,800. The mid-range amount of ground rent was £60 invoiced yearly. The lease came to a finish on 12 August 2075. Taking into account 50 years remaining we estimated the compensation to the freeholder for the lease extension to be within £44,700 and £51,600 not including fees.
An example of a Freehold Enfranchisement case 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 related to 2 flats. The remaining number of years on the lease was 68.28 and 158.