The basic rule is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Blackburn have the right to extend the lease for an additional ninety years in accordance with the 1993 Leasehold Reform Act. Do give careful consideration before delaying your Blackburn lease extension. Putting off the costs today simply escalates the premium you will eventually be required to pay to extend the lease.
Leasehold residencies in Blackburn with in excess of 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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 obtain guidance from a conveyancing solicitor and valuer with experience in this area.
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 Blackburn lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Daniel owned a high value apartment in Blackburn being marketed with a lease of fraction over 59 years unexpired. Daniel informally approached his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 per annum. No ground rent would be due on a lease extension were Daniel to exercise his statutory right. Daniel obtained expert legal guidance and secured an acceptable deal informally and readily saleable.
Mrs S Nelson completed a one bedroom apartment in Blackburn in May 2007. We are asked if we could approximate the premium could be for a 90 year lease extension. Identical flats in Blackburn with an extended lease were worth £275,000. The average ground rent payable was £55 collected quarterly. The lease ended in 2101. Taking into account 77 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 not including professional charges.
In 2010 we were contacted by Dr Freya Miller who, having purchased a one bedroom flat in Blackburn in September 2007. We are asked if we could shed any light on how much (roughly) price could be to extend the lease by ninety years. Comparative homes in Blackburn with an extended lease were in the region of £183,600. The mid-range ground rent payable was £65 billed yearly. The lease ended on 23 June 2081. Taking into account 57 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 not including expenses.