Main reasons to commence your Blackburn lease extension

Top reasons for lease extension now:

Increase your lease and increase your Blackburn property value

It’s a harsh certainty that a Blackburn residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Blackburn property market.Once your lease nears 85ish years, you should start considering a lease extension. If lease term drops below 80 years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most flat owners in Blackburn will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you qualify for an extension. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process is instigated and you will need to be guided by your lawyer throughout the process.

Blackburn property with a lease extension is almost the same value as a freehold

Leasehold properties in Blackburn with in excess of 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.

Lending institutions will not finance a property on a short lease

Nearly all mortgage companies will be unwilling to grant a mortgage on a lease with less than 70 years remaining - although this varies from lender to lender. A buyer will no doubt find it difficult in obtaining a mortgage and this could result in your Blackburn property becoming difficult to sell or to obtain finance on.

What makes us experts in Blackburn lease extensions?

The conveyancing solicitors that we work with undertake 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 conveyancer we work with provide it.

Blackburn Lease Extension Case Summaries:

Aimee, Blackburn, Lancashire,

Off the back of protracted negotiations with the freeholder of her studio flat in Blackburn, Aimee started the lease extension process just as the lease was coming close to the crucial eighty-year mark. The transaction was finalised in July 2009. The landlord’s costs were restricted to slightly above four hundred pounds.

Blackburn case:

Mr and Mrs. V Mercier bought a recently refurbished flat in Blackburn in May 2004. We are asked if we could shed any light on how much (roughly) premium would likely be for a 90 year extension to my lease. Similar residencies in Blackburn with 100 year plus lease were worth £280,000. The average amount of ground rent was £55 collected quarterly. The lease ended on 9 January 2104. Considering the 78 years left we calculated the premium to the landlord for the lease extension to be within £13,300 and £15,400 plus fees.

Blackburn case:

Mr and Mrs. A Davis owned a one bedroom apartment in Blackburn in September 2008. The dilemma was if we could estimate the premium would be for a ninety year extension to my lease. Similar homes in Blackburn with 100 year plus lease were in the region of £186,000. The average amount of ground rent was £65 collected annually. The lease concluded on 17 January 2084. Taking into account 58 years as a residual term we calculated the premium to the landlord to extend the lease to be within £24,700 and £28,600 not including legals.