Blackheath leases on domestic properties are gradually losing value. Where your lease has in the region of ninety years remaining, you should start thinking about a lease extension. An important point to note is that it is desirable for your lease extension to be in place before the term of the existing lease falls lower than eighty years - otherwise a higher premium will be payable. Leasehold owners in Blackheath will usually qualify for a lease extension; however it’s a good idea to check with a conveyancer to confirm your eligibility. In certain circumstances you may not be entitled. There are also strict deadlines and steps to follow once the process has started so it’s sensible to be guided by a conveyancer during the process.
It is conventional wisdom that a property with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years left, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Barnsley Building Society | |
| Birmingham Midshires | |
| TSB |
Regardless of whether you are a tenant or a landlord in Blackheath,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Blackheath valuers.
In 2014 Kian, came critically close to the 80-year threshold with the lease on his leasehold flat in Blackheath. In buying his flat two decades ago, the lease term was of no significance. by good luck, he recognised he would imminently be paying an escalated premium for a lease extension. Kian extended the lease just under the wire in September. Kian and the landlord who owned the flat above ultimately settled on a premium of £6,000 . If the lease had slid to less than 80 years, the premium would have increased by at least £925.
Dr U Edwards bought a garden flat in Blackheath in June 2011. We are asked if we could estimate the premium would be for a ninety year lease extension. Comparative premises in Blackheath with an extended lease were worth £265,000. The mid-range ground rent payable was £50 invoiced monthly. The lease ran out on 2 January 2099. Considering the 73 years remaining we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of fees.
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 was in relation to 2 flats. The unexpired term as at the valuation date was 72 years.