The market value of a leasehold property in Blackburn is impacted by how many years the lease has remaining. If it is close to or less than 80 years you should envisage problems on re-sale, so it is advisable to arrange for a lease extension prior to purchasing. It is preferable to commence the lease extension process when a lease still has 82 years remaining so that all matters can be addressed prior to the eighty year threshold. Leasehold Reform legislation enables Blackburn qualifying lessees to a ninety year extension added to their remaining lease term (ie if your lease has fifty years left the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Blackburn with over 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Lease extensions in Blackburn can be a difficult process. We recommend you get guidance from a conveyancer and valuer well versed in the legislation and lease extension process.
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 in-depth market knowledge dealing with Blackburn lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jason owned a conversion apartment in Blackburn on the market with a lease of a few days over 59 years outstanding. Jason on an informal basis spoke with his landlord a well known local-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Jason to invoke his statutory right. Jason procured expert advice and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
Last month we were e-mailed by Mr Edward Walker , who bought a studio flat in Blackburn in March 2010. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Similar residencies in Blackburn with 100 year plus lease were worth £255,000. The mid-range ground rent payable was £50 billed annually. The lease end date was on 24 January 2095. Taking into account 70 years remaining we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including expenses.
In 2014 we were e-mailed by Dr F Leroy who, having bought a first floor apartment in Blackburn in March 2000. The question was if we could approximate the price could be for a ninety year extension to my lease. Comparative flats in Blackburn with an extended lease were valued about £246,800. The mid-range amount of ground rent was £60 billed annually. The lease ended on 19 May 2075. Having 50 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £44,700 and £51,600 plus fees.