Blackheath leases on residential deteriorating in value. if your lease has about 90 years left, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease falls below this level then you start paying an additional element called marriage value. Flat owners in Blackheath will usually be legally entitled to a lease extension; however a solicitor will confirm if you qualify. In certain cases you may not be entitled. There are prescribed timetables and procedures to follow once the process has started so it’s wise to be guided by a lawyer during the process.
Leasehold residencies in Blackheath with more than 100 years remaining on the lease are often referred to as ‘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 upside in buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 increased control over the value of your Blackheath leasehold, as your property will be more valuable and saleable 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.
Last October Tommy, started to get close to the eighty-year mark with the lease on his purpose- built flat in Blackheath. Having purchased his home two decades ago, the lease term was of no interest. As luck would have it, he became aware that he needed to take steps soon on a lease extension. Tommy extended the lease just under the wire last May. Tommy and the landlord who owned the flat above subsequently agreed on sum of £6,000 . If the lease had dropped to less than eighty years, the price would have gone up by at least £850.
In 2009 we were contacted by Mr and Mrs. B Hernández who, having purchased a newly refurbished flat in Blackheath in January 2008. The question was if we could estimate the premium would likely be for a ninety year extension to my lease. Comparable homes in Blackheath with 100 year plus lease were valued about £227,800. The average amount of ground rent was £45 invoiced every twelve months. The lease expired in 2090. Taking into account 65 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 not including costs.
An example of a Lease Extension decision for a Blackheath property 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 was in relation to 2 flats. The unexpired residue of the current lease was 72 years.