Blackfriars 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 the lease gets more expensive. Legislation has been in place for sometime now which entitles qualifying Blackfriars residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Blackfriars you would be well advised to investigate if your lease has between seventy and 90 years left. There are good reasons why a Blackfriars flat owner with a lease having around 80 years unexpired should take action to make sure that a lease extension is put in place without delay
Leasehold residencies in Blackfriars with in excess of one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
|Accord Mortgages||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.|
|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.|
|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.|
|Royal Bank of Scotland||Mortgage term plus 30 years. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower.|
Retaining our service will provide you better control over the value of your Blackfriars leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of unsuccessful negotiations with the landlord of her leasehold flat in Blackfriars, Jasmine initiated the lease extension process just as the lease was approaching the all-important 80-year deadline. The lease extension was concluded in October 2005. The freeholder’s costs were negotiated to below 600 pounds.
Mr and Mrs. S Thompson was assigned a lease of a one bedroom apartment in Blackfriars in April 2005. The question was if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Comparable flats in Blackfriars with 100 year plus lease were in the region of £225,400. The mid-range amount of ground rent was £45 collected per annum. The lease expired in 2083. Considering the 64 years unexpired we calculated the compensation to the landlord to extend the lease to be between £16,200 and £18,600 plus costs.
An example of a Lease Extension matter before the tribunal for a Blackfriars property is Flat 89 Trinity Court Grays Inn Road in February 2013. the Tribunal found that the premium to be paid by the tenant on the grant of a new lease, in accordance with section 56 and Schedule 13 to the Leasehold Reform, Housing and Urban Development Act 1993 should be £36,229. This case affected 1 flat. The unexpired term was 66.8 years.