Main reasons to start your Blackfriars lease extension

Main reasons to commence your Blackfriars lease extension today:

Increase your lease and increase your Blackfriars property value

It’s a harsh truth that a Blackfriars residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Blackfriars property market.Once your lease gets to 85ish years, you need to start considering a lease extension. If the number of years remaining slips under 80 years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most leasehold owners in Blackfriars will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancing solicitor for the duration of the formalities.

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

Leasehold residencies in Blackfriars with over 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.

Banks and Building Societies may decide not to grant a mortgage on a short lease

The trend since the credit crunch has been for banks to tighten lending requirements 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. Historically banks were content with 25 years plus the term of the loan - typically fifty year leases but those requirements evolved by the requirement for longer and longer leases - many now have a minimum term of 75 years as a prerequisite.

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

Irrespective of whether you are a tenant or a landlord in Blackfriars,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Blackfriars valuers.

Blackfriars Lease Extension Case Summaries:

Ben, Blackfriars, London

Last Autumn Ben, started to get close to the 80-year mark with the lease on his two bedroom flat in Blackfriars. In buying his property 19 years previously, the unexpired term was of no relevance. by good luck, he became aware that he needed to take action soon on Extending the lease. Ben was able to extend his lease just under the wire in July. Ben and the freeholder via the management company in the end settled on a premium of £5,000 . If the lease had gone lower than 80 years, the figure would have escalated by at least £850.

Blackfriars case:

Last month we were called by Mr and Mrs. V Campbell , who moved into a recently refurbished flat in Blackfriars in October 1998. We are asked if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Identical residencies in Blackfriars with an extended lease were worth £245,000. The mid-range amount of ground rent was £50 collected yearly. The lease finished on 2 March 2094. Considering the 68 years remaining we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus professional charges.