Blackfriars leases on domestic deteriorating in value. if your lease has in the region of 90 years left, you should start considering the need for a lease extension. If lease term is less than eighty years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Blackfriars will mostly qualify for a lease extension; however a solicitor should be able confirm your eligibility. In some situations you may not qualify. There are prescribed deadlines and procedures to follow once the process has commenced so it’s prudent to be guided by a lawyer during the process.
Leasehold residencies in Blackfriars 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 home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you better control over the value of your Blackfriars leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Leon owned a conversion apartment in Blackfriars being marketed with a lease of fraction over sixty years unexpired. Leon informally approached his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £50 annually. Ordinarily, ground rent would not be payable on a lease extension were Leon to invoke his statutory right. Leon procured expert advice and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
Dr Liam Campbell took over the lease of a ground floor apartment in Blackfriars in March 2000. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by a further 90 years. Identical homes in Blackfriars with a long lease were in the region of £208,200. The mid-range ground rent payable was £65 invoiced annually. The lease terminated on 14 November 2087. Having 61 years left we estimated the compensation to the landlord to extend the lease to be within £19,000 and £22,000 exclusive of expenses.
An example of a Lease Extension matter before the tribunal for a Blackfriars residence 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 was in relation to 1 flat. The unexpired residue of the current lease was 66.8 years.