Blackburn leases on residential properties are gradually losing value. Where your lease has approximately ninety years unexpired, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for the lease extension to take place before the term of the existing lease drops under 80 years - otherwise a higher amount will be due. Flat owners in Blackburn will usually be legally entitled to a lease extension; however a solicitor should be able check if you qualify. In certain circumstances you may not be entitled. There are prescribed deadlines and formalities to follow once the process has commenced so it’s best to be guided by a lawyer during the process.
Leasehold properties in Blackburn with in excess of one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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 procure professional help from a conveyancing solicitor and valuer 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 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.
Following lengthy correspondence with the landlord of her basement flat in Blackburn, Catherine initiated the lease extension process as the eighty year deadline was fast nearing. The legal work completed in March 2008. The landlord’s charges were kept to an absolute minimum.
In 2014 we were phoned by Mr and Mrs. V Johnson who, having took over the lease of a garden flat in Blackburn in January 1997. We are asked if we could estimate the price would be to prolong the lease by 90 years. Similar properties in Blackburn with 100 year plus lease were valued about £166,400. The mid-range ground rent payable was £60 invoiced quarterly. The lease lapsed in 2080. Having 54 years remaining we approximated the compensation to the landlord to extend the lease to be between £32,300 and £37,400 exclusive of professional charges.
Last month we were approach by Dr M Ali , who bought a first floor flat in Blackburn in October 2012. The dilemma was if we could shed any light on how much (roughly) premium would be for a 90 year lease extension. Comparative flats in Blackburn with a long lease were valued around £227,800. The average amount of ground rent was £45 billed per annum. The lease came to a finish in 2091. Given that there were 65 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of professional charges.