There is no doubt about it a leasehold property in Blackfriars is a wasting asset as a result of the diminishing lease term. Where the residual term has, beyond one hundred years to run then this decrease may be fractional however there will become a point in time when a lease has under than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should consider extending without delay. Many flat owners in Blackfriars will qualify for this right; however a conveyancing solicitor can advise whether you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service will provide you increased control over the value of your Blackfriars leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Following lengthy discussions with the landlord of her garden flat in Blackfriars, Rhiannon initiated the lease extension process as the 80 year threshold was fast nearing. The lease extension was finalised in October 2006. The landlord’s costs were kept to an absolute minimum.
Last Winter we were e-mailed by Dr Edward White , who completed a purpose-built flat in Blackfriars in November 2005. The question was if we could approximate the price would be to prolong the lease by an additional years. Identical homes in Blackfriars with 100 year plus lease were valued about £250,000. The average ground rent payable was £50 billed per annum. The lease lapsed on 18 February 2094. Considering the 69 years left we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of expenses.
An example of a Lease Extension case for a Blackfriars flat is Flat 89 Trinity Court Grays Inn Road in February 2013. the Tribunal found that the premium to be paid by the tenant on the grant of a new lease, in accordance with section 56 and Schedule 13 to the Leasehold Reform, Housing and Urban Development Act 1993 should be £36,229. This case related to 1 flat. The number of years remaining on the existing lease(s) was 66.8 years.