Top reasons for Blackheath lease extension

Why you should commence your Blackheath lease extension today:

A Blackheath leasehold property depreciates with the years remaining on the lease.

The re-sale value of a leasehold property in Blackheath depends on how long the lease has remaining. If it is near to or fewer than 80 years you should expect difficulties on re-sale, so it is advisable to arrange for a lease extension before buying. It is preferable to start the process of extending the lease is when a lease still has 82 years to run so that all matters can be finalised in advance of the eighty year mark. Current legislation entitles Blackheath qualifying lessees to a ninety year extension added to their residual lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.

Blackheath property with a lease extension has roughly the same value as a freehold

Leasehold premises in Blackheath with more than 100 years remaining 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 premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.

Banks and Building Societies may not lend with a short lease

Lending institutions have specific criteria when lending monies secured on leasehold property. Some will simply refrain from lending at all once an unexpired lease term drops beneath a specified unexpired lease term. Many Lending institutions will not regard property with an unexpired term of less than seventy years as acceptable security. As well as impacting your ability to sell, it is also relevant where you are seeking to refinance your Blackheath property.

Get in touch with one of our Blackheath lease extension solicitors or enfranchisement solicitors

Lease extensions in Blackheath can be a difficult process. We recommend you secure guidance 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 procuring Blackheath lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Blackheath Lease Extension Case Studies:

Jacob, Blackheath, South East London,

Jacob was the the leasehold proprietor of a 2 bedroom flat in Blackheath being sold with a lease of a few days over sixty years remaining. Jacob informally contacted his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £200 per annum. Ordinarily, ground rent would not be due on a lease extension were Jacob to invoke his statutory right. Jacob procured expert advice and secured an acceptable deal without resorting to tribunal and ending up with a market value flat.

Blackheath case:

Mr and Mrs. G Bernard completed a basement apartment in Blackheath in July 1997. The question was if we could approximate the premium would likely be for a ninety year extension to my lease. Identical residencies in Blackheath with an extended lease were worth £208,200. The mid-range amount of ground rent was £65 collected every twelve months. The lease finished in 2087. Taking into account 61 years left we estimated the premium to the freeholder to extend the lease to be between £20,000 and £23,000 exclusive of costs.