With a long leasehold property in Blackheath, you are in fact renting it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may think about a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately greater notably once there are fewer than eighty years left. Anyone in Blackheath with a lease nearing 81 years unexpired should seriously think of extending it sooner rather than later. When a lease has under 80 years remaining, under the relevant statute the landlord can calculate and charge a larger premium, based on a technical computation, known as “marriage value” which is payable.
Leasehold premises in Blackheath with in excess of 100 years left 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 property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate 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. |
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Blackheath can be a difficult process. We recommend you procure professional help from a lawyer and surveyor 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 in-depth market knowledge dealing with Blackheath lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Zachary owned a 2 bedroom apartment in Blackheath being sold with a lease of a few days over sixty years outstanding. Zachary on an informal basis contacted his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Zachary to exercise his statutory right. Zachary obtained expert legal guidance and was able to make an informed decision and handle with the matter and sell the flat.
Last Autumn we were approach by Mr and Mrs. J Lefebvre , who purchased a studio apartment in Blackheath in March 2004. The dilemma was if we could approximate the premium could be for a 90 year lease extension. Similar homes in Blackheath with a long lease were in the region of £290,000. The mid-range ground rent payable was £60 billed quarterly. The lease expired in 2106. Having 80 years remaining we approximated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 not including expenses.
An example of a Lease Extension decision for a Blackheath premises is 73 Walerand Road in August 2012. the result of the findings of the Tribunal led to a premium to be paid for the extended lease in respect of Flat 73 in the sum of £10,040. The premium applicable in respect of Flat 85 was £5,710. This case related to 2 flats. The unexpired residue of the current lease was 72 years.