Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will normally be granted for a fixed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Blackfriars. Clearly, the term of lease remaining reduces as time goes by. This may pass by relatively unnoticed when the residence has to be sold or refinanced. The shorter the lease the less it is worth and the more expensive it will be to extend the lease. Eligible long lease owners in Blackfriars have the right to extend the lease for an additional ninety years in accordance with the 1993 Leasehold Reform Act. You should give careful consideration before delaying your Blackfriars lease extension. Holding off that expense now simply increases the price you will ultimately have to pay to extend your lease
It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Birmingham Midshires | |
| Coventry Building Society | |
| National Westminster Bank | |
| Nationwide Building Society |
Lease extensions in Blackfriars can be a difficult process. We recommend you obtain professional help from a conveyancer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Blackfriars lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Logan was the the leasehold owner of a high value flat in Blackfriars being sold with a lease of just over 61 years outstanding. Logan 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 freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Logan to exercise his statutory right. Logan obtained expert advice and secured satisfactory resolution without going to tribunal and ending up with a market value flat.
In 2011 we were called by Dr Joshua Patel who, having was assigned a lease of a one bedroom apartment in Blackfriars in June 1998. We are asked if we could shed any light on how much (approximately) premium could be for a 90 year extension to my lease. Similar premises in Blackfriars with an extended lease were in the region of £260,000. The average ground rent payable was £50 collected per annum. The lease expired on 14 September 2098. Considering the 72 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including fees.
An example of a Lease Extension matter before the tribunal for a Blackfriars premises 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.