Why you should commence your Blackfen lease extension

Top reasons for lease extension now:

A Blackfen lease depreciates with the years remaining on the lease.

When it comes to long leasehold property in Blackfen, you are actually buying an entitlement to reside in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably once there are fewer than eighty years remaining. Anyone in Blackfen with a lease nearing 81 years unexpired should seriously think of extending it sooner as opposed to later. Once the lease term has fewer than eighty years left, under the current Act the landlord can calculate and charge a larger premium, based on a technical computation, strangely termed as “marriage value” which is due.

Blackfen property with a lease extension is almost the same value as a freehold

It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the residence will be worth the same as a freehold for many years ahead.

Banks and Building Societies will not finance a property with a short lease

The trend since over the last decade has been for lenders to tighten lending criteria across the board - this has extended to the types of security over which the mortgage is to be charged. This has meant the minimum number of years remaining under the lease required by lenders has increased. In the past banks would grant a mortgage on a lease with 25 years plus the term of the loan - routinely 50 year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many use a minimum term of 75 years as standard.

Get in touch with one of our Blackfen lease extension solicitors or enfranchisement solicitors

The conveyancers 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 conveyancing solicitor we work with provide it.

Blackfen Lease Extension Example Cases:

Liam, Blackfen, South East London,

Liam owned a conversion flat in Blackfen being sold with a lease of fraction over 59 years left. Liam on an informal basis spoke with his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Liam to exercise his statutory right. Liam obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.

Blackfen case:

In 2011 we were e-mailed by Mr and Mrs. A Ricardo who, having acquired a one bedroom apartment in Blackfen in November 2000. The question was if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Comparable properties in Blackfen with 100 year plus lease were worth £270,000. The mid-range amount of ground rent was £55 billed monthly. The lease expiry date was on 9 September 2100. Having 74 years left we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of professional charges.