With a residential leasehold property in Blackburn, you are actually purchasing a right to live in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive particularly once there are fewer than eighty years left. Leasehold owners in Blackburn with a lease drawing near to 81 years remaining should seriously think of extending it sooner as opposed to later. When the lease term has under eighty years left, under the current legislation the landlord is entitled to calculate and demand a greater premium, based on a technical multiplication, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers 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 lawyer we work with provide it.
Andrew was the the leasehold proprietor of a high value flat in Blackburn on the market with a lease of just over 59 years unexpired. Andrew informally contacted his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Andrew to exercise his statutory right. Andrew procured expert advice and secured an acceptable resolution informally and readily saleable.
Mr and Mrs. D Phillips owned a ground floor apartment in Blackburn in January 2011. The question was if we could approximate the compensation to the landlord would be to extend the lease by a further 90 years. Identical residencies in Blackburn with 100 year plus lease were worth £193,400. The mid-range ground rent payable was £65 invoiced monthly. The lease expiry date was on 24 June 2085. Considering the 59 years left we approximated the premium to the landlord for the lease extension to be between £21,900 and £25,200 plus professional charges.
In 2010 we were approached by Mr Oscar Hernández who, having acquired a basement apartment in Blackburn in January 2006. The question was if we could shed any light on how much (roughly) price would be for a 90 year lease extension. Similar premises in Blackburn with 100 year plus lease were valued around £250,000. The average ground rent payable was £50 billed per annum. The lease concluded in 2096. Having 70 years outstanding we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus costs.