Blackfen leases on residential properties are gradually losing value. if your lease has in the region of ninety years remaining, you should start considering the need for a lease extension. An important point to note is that it is desirable for a lease extension to be in place before the term of the existing lease dips below eighty years - otherwise a higher amount will be payable. Leasehold owners in Blackfen will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to check if you qualify. In some cases you may not be entitled. There are also strict timetables and formalities to follow once the process has started so it’s best to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| 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. |
| Halifax | Minimum 70 years from the date 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 |
| 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. |
Using our service will provide you increased control over the value of your Blackfen leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Ryan was the the leasehold owner of a studio apartment in Blackfen being sold with a lease of just over sixty years outstanding. Ryan informally contacted his landlord being a well known local-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 annually. No ground rent would be payable on a lease extension were Ryan to exercise his statutory right. Ryan obtained expert legal guidance and secured an acceptable deal without going to tribunal and sell the flat.
In 2010 we were contacted by Dr M Davis who, having purchased a one bedroom flat in Blackfen in March 2009. The question was if we could approximate the price would be to prolong the lease by ninety years. Comparative premises in Blackfen with an extended lease were in the region of £250,000. The mid-range ground rent payable was £50 collected per annum. The lease elapsed on 12 February 2094. Taking into account 69 years left we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including legals.
An example of a Lease Extension case for a Blackfen premises 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 affected 1 flat.