Bellingham leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. The majority of owners of residential leasehold property in Bellingham enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Bellingham you would be well advised to check if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under 80 years, the cost of any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
It is generally considered that a property with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| 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. |
| 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; |
| Leeds Building Society | 85 years remaining from the start 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 |
| Yorkshire 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. |
Using 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 decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 George, started to get close to the 80-year mark with the lease on his one bedroom flat in Bellingham. Having purchased his flat two decades ago, the lease term was of minimal concern. by good luck, he noticed he would imminently be paying way over the odds for Extending the lease. George extended the lease just under the wire last April. George and the freeholder via the managing agents subsequently agreed on sum of £5,000 . If the lease had slipped to less than eighty years, the sum would have increased by a minimum £1,125.
Ms Zoe Davis acquired a ground floor apartment in Bellingham in July 2008. The question was if we could approximate the premium could be for a ninety year extension to my lease. Identical homes in Bellingham with an extended lease were in the region of £275,000. The mid-range ground rent payable was £55 invoiced yearly. The lease concluded in 2101. Given that there were 77 years left we calculated the premium to the landlord for the lease extension to be within £13,300 and £15,400 not including expenses.
An example of a Freehold Enfranchisement decision for a Bellingham residence 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 term as at the valuation date was 68.28 and 158.