Unfortunately that a Blackfriars residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Blackfriars property prices.Once your lease gets to 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below 80 years - otherwise a higher premium will be due. The majority of leasehold owners in Blackfriars will be able to extend under the legislation; however a lawyer will be able to confirm whether you qualify for an extension. In some situations you may not qualify. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your conveyancer throughout the process.
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Skipton Building Society | |
| TSB | |
| Royal Bank of Scotland | |
| Virgin | |
| Yorkshire Building Society |
Using our service will provide you enhanced control over the value of your Blackfriars leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of lengthy negotiations with the freeholder of her studio flat in Blackfriars, Hollie started the lease extension process as the eighty year deadline was swiftly nearing. The lease extension was finalised in September 2007. The landlord’s charges were kept to an absolute minimum.
In 2011 we were phoned by Dr Aaron Bell who, having completed a first floor flat in Blackfriars in January 2008. The question was if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year extension to my lease. Similar homes in Blackfriars with an extended lease were in the region of £285,000. The mid-range ground rent payable was £55 invoiced every twelve months. The lease elapsed on 3 May 2106. Given that there were 80 years unexpired we calculated the premium to the landlord for the lease extension to be within £12,400 and £14,200 plus fees.
An example of a Lease Extension case for a Blackfriars residence 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 was in relation to 1 flat. The number of years remaining on the existing lease(s) was 66.8 years.