Blackfen leases on domestic deteriorating in value. Where your lease has approximately 90 years remaining, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease falls below this level then you begin incurring an additional element called marriage value. Flat owners in Blackfen will mostly be legally entitled to a lease extension; however a solicitor will confirm your eligibility. In some cases you may not qualify. There are also strict timetables and steps to follow once the process is triggered so it’s wise to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Chelsea 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. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Blackfen can be a difficult process. We recommend you obtain guidance 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 Blackfen lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Ryan, started to get close to the 80-year mark with the lease on his ground floor flat in Blackfen. Having purchased his flat 18 years previously, the length of the lease was of little importance. by good luck, he became aware that he needed to take steps soon on Extending the lease. Ryan was able to extend his lease at the eleventh hour in March. Ryan and the freeholder eventually settled on an amount of £5,000 . If the lease had dipped lower than eighty years, the price would have gone up by a minimum £875.
In 2012 we were e-mailed by Mr and Mrs. N Dupont who, having bought a purpose-built apartment in Blackfen in May 1997. We are asked if we could shed any light on how much (roughly) price would be to extend the lease by an additional years. Similar homes in Blackfen with 100 year plus lease were in the region of £232,800. The average amount of ground rent was £45 billed quarterly. The lease came to a finish in 2090. Having 65 years outstanding we estimated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 plus fees.
An example of a Lease Extension case for a Blackfen flat is 103a Footscray Road in January 2014. The tribunal determines that the premium payable for the extended lease should be £34,500 according to the expert witness valuation calculation This case affected 1 flat.