Blackfen leases on domestic properties are gradually losing value. Where your lease has in the region of ninety years remaining, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease dips below this level then you start incurring an additional element called marriage value. Leasehold owners in Blackfen will mostly qualify for a lease extension; however a solicitor should be able check if you qualify. In some situations you may not be entitled. There are prescribed deadlines and formalities to comply with once the process has started so it’s sensible to be guided by a conveyancing solicitor during the process.
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
The lawyers that we work with procure 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 lawyer we work with provide it.
Half a year ago Connor, started to get close to the eighty-year threshold with the lease on his basement flat in Blackfen. In buying his home 19 years previously, the unexpired term was of little interest. Fortunately, he noticed he would imminently be paying an inflated amount for Extending the lease. Connor was able to extend his lease just ahead of time in June. Connor and the freeholder in the end settled on sum of £5,000 . If he had missed the deadline, the sum would have escalated by a minimum £850.
Dr M Williams moved into a purpose-built flat in Blackfen in July 2009. The dilemma was if we could shed any light on how much (approximately) premium would likely be to prolong the lease by 90 years. Identical premises in Blackfen with a long lease were worth £260,000. The average ground rent payable was £50 collected monthly. The lease concluded in 2096. Having 71 years unexpired we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus legals.
An example of a Lease Extension matter before the tribunal for a Blackfen residence 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 related to 1 flat.