Blackburn residential property owned on a long lease is a wasting asset because a leaseholder merely owns the property for a set term.
It is generally considered that a property with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
The conveyancers that we work with procure Blackburn lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Off the back of unsuccessful negotiations with the freeholder of her studio apartment in Blackburn, Alisha commenced the lease extension process as the 80 year deadline was rapidly coming. The legal work was concluded in September 2009. The landlord’s charges were kept to an absolute minimum.
Dr Oscar Gray took over the lease of a one bedroom apartment in Blackburn in January 2002. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Identical residencies in Blackburn with an extended lease were worth £285,000. The mid-range amount of ground rent was £55 billed annually. The lease ended in 2105. Taking into account 80 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of costs.
Last August we were phoned by Mr Omar Watson , who purchased a garden flat in Blackburn in August 2003. The dilemma was if we could estimate the price would be for a ninety year lease extension. Comparative homes in Blackburn with an extended lease were valued about £200,800. The mid-range ground rent payable was £65 collected monthly. The lease finished in 2085. Given that there were 60 years unexpired we estimated the premium to the landlord for the lease extension to be within £20,900 and £24,200 exclusive of costs.