On the balance of probabilities if you own a flat in Blackfen you actually own a long leasehold interest over your property
It is generally considered that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years left, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
The lawyers that we work with undertake Blackfen lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Off the back of lengthy negotiations with the freeholder of her ground floor apartment in Blackfen, Megan commenced the lease extension process just as her lease was approaching the crucial eighty-year mark. The lease extension was concluded in June 2007. The landlord’s charges were kept to an absolute minimum.
In 2014 we were approached by Ms Lauren Murphy who, having bought a first floor flat in Blackfen in June 2012. We are asked if we could shed any light on how much (approximately) price would likely be to prolong the lease by a further 90 years. Comparable residencies in Blackfen with an extended lease were valued about £200,800. The mid-range ground rent payable was £65 billed monthly. The lease lapsed in 2085. Taking into account 60 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £20,900 and £24,200 not including costs.
An example of a Lease Extension decision for a Blackfen flat is 103a Footscray Road in January 2014. The tribunal determines that the premium payable for the extended lease should be £34,500 according to the expert witness valuation calculation This case was in relation to 1 flat.