Unfortunately that a Blackburn residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Blackburn property prices.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. If the number of years remaining falls under 80 years, you will end up paying half 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 leasehold owners in Blackburn will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm if you are eligibility. In some cases you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is instigated and you will need to be guided by your lawyer from beginning to end of the formalities.
Leasehold properties in Blackburn with in excess of 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barclays plc | |
| Chelsea Building Society | |
| Leeds Building Society | |
| Royal Bank of Scotland |
Lease extensions in Blackburn can be a difficult process. We recommend you secure professional help from a lawyer and valuer well versed in the legislation and lease extension process.
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 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.
Aiden was the the leasehold owner of a studio flat in Blackburn on the market with a lease of fraction over 72 years remaining. Aiden informally approached his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £150 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Aiden to exercise his statutory right. Aiden procured expert advice and was able to make a more informed decision and deal with the matter and readily saleable.
Last year we were contacted by Mr and Mrs. W Robinson , who owned a first floor apartment in Blackburn in August 2004. The question was if we could estimate the compensation to the landlord could be for a ninety year lease extension. Identical properties in Blackburn with a long lease were valued around £250,000. The average amount of ground rent was £50 billed every twelve months. The lease finished on 14 July 2096. Considering the 70 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of costs.
In 2010 we were called by Mr W Thompson who, having acquired a ground floor apartment in Blackburn in June 1997. We are asked if we could approximate the premium would be to prolong the lease by ninety years. Comparative premises in Blackburn with a long lease were in the region of £246,800. The mid-range amount of ground rent was £60 invoiced monthly. The lease expired on 18 March 2076. Taking into account 50 years remaining we estimated the premium to the freeholder to extend the lease to be between £44,700 and £51,600 not including costs.