Blackheath leases on residential properties are gradually diminishing in 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. Most owners of residential leasehold property in Blackheath enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Blackheath you would be well advised to see if your lease has between seventy and 90 years left. There are compelling reasons why a Blackheath leaseholder with a lease having around 80 years unexpired should take action to make sure that a lease extension is actioned without delay
Leasehold properties in Blackheath with more than 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Halifax | |
| Leeds Building Society | |
| TSB | |
| The Mortgage Works |
Regardless of whether you are a tenant or a freeholder in Blackheath,the lease extension lawyers that we work with will always be happy 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.
18 months ago Eliot, started to get near to the 80-year mark with the lease on his leasehold apartment in Blackheath. In buying his home 18 years previously, the unexpired term was of no bearing. Luckily, he noticed he would soon be paying an inflated amount for Extending the lease. Eliot was able to extend his lease just under the wire last September. Eliot and the landlord who owned the flat above subsequently agreed on a premium of £5,000 . If he not met the deadline, the sum would have escalated by at least £925.
In 2009 we were contacted by Dr F Hall who, having owned a ground floor flat in Blackheath in July 2011. We are asked if we could estimate the price would likely be for a ninety year extension to my lease. Identical flats in Blackheath with a long lease were in the region of £250,000. The mid-range ground rent payable was £50 collected yearly. The lease ended on 3 May 2095. Taking into account 69 years remaining we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus costs.
An example of a Lease Extension matter before the tribunal for a Blackheath flat 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 term as at the valuation date was 72 years.