Blackfen leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Most owners of residential leasehold property in Blackfen enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Blackfen you really ought to check if your lease has between seventy and ninety years remaining. There are compelling reasons why a Blackfen flat owner with a lease having around eighty years left should take action to ensure that a lease extension is put in place without delay
It is conventional wisdom that a property with over one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
The conveyancing solicitors that we work with undertake Blackfen 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.
Twenty four months ago Noah, came perilously near to the eighty-year threshold with the lease on his garden apartment in Blackfen. In buying his property two decades ago, the lease term was of no bearing. by good luck, he noticed he needed to take action soon on Extending the lease. Noah arranged for a lease extension just under the wire last January. Noah and the landlord ultimately agreed on a premium of £6,000 . If he had missed the deadline, the price would have become more costly by a minimum £875.
Last Winter we were phoned by Mr and Mrs. V Harris , who was assigned a lease of a ground floor flat in Blackfen in April 2007. We are asked if we could estimate the premium could be for a 90 year lease extension. Identical residencies in Blackfen with 100 year plus lease were valued about £225,400. The mid-range amount of ground rent was £45 collected per annum. The lease ended on 18 June 2089. Having 64 years outstanding we approximated the compensation to the landlord for the lease extension to be between £15,200 and £17,600 exclusive of fees.
An example of a Lease Extension decision for a Blackfen property is 103a Footscray Road in January 2014. The tribunal determines that the premium payable for the extended lease should be £34,500 according to the expert witness valuation calculation This case affected 1 flat.