Stop! Your Lease Extension in Blackheath Could Be FREE

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Many leaseholders in Blackheath are unaware that their original lawyer had a duty to warn them about future mortgageability and saleability issues. Before you pay thousands to your freeholder, let us audit your purchase history. You might have a claim that pays for your lease extension in full

If you are facing a significant premium because your lease in Blackheath has dropped toward the 80-year mark, your previous lawyer may be at fault. Our panel of experts specialise in recovering lease extension costs from negligent firms who failed to protect your investment.

Main reasons to commence your Blackheath lease extension

Top reasons for lease extension now:

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

Blackheath leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. The majority of owners of residential leasehold property in Blackheath enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Blackheath you would be well advised to investigate if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under eighty years, the cost of any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value

An extended lease has roughly the same value as a freehold

It is generally accepted that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.

Banks and Building Societies may not lend with a short lease

Whether or not the lease is be regarded as a short lease varies by mortgage company, yet banks and building societies start to get concerned at around 75 years. This will cause difficulties when you wish to dispose of or remortgage your property as it will be effectively unmortgageable. You might not have an imminent plan to sell but when you do your buyer must hold off for a couple of years before being able to exercise the right to a a lease extension.

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.
Barclays plc Leases with less than 70 years at the commencement of the mortgage are not acceptable.

Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval:

• Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND
• The value of the property subject to the short remaining term is £500,000 or more AND
• The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing;
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.
Leeds Building Society 85 years remaining from the start of the mortgage.
TSB Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.

What makes us experts in Blackheath lease extensions?

The conveyancing solicitors that we work with undertake Blackheath lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.

Blackheath Lease Extension Case Summaries:

Caleb, Blackheath, South East London,

Caleb owned a 2 bedroom apartment in Blackheath being marketed with a lease of a little over 59 years left. Caleb on an informal basis contacted his landlord a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £200 yearly. Ordinarily, ground rent would not be payable on a lease extension were Caleb to invoke his statutory right. Caleb obtained expert advice and secured an acceptable resolution informally and ending up with a market value flat.

Blackheath case:

Mr and Mrs. N Green took over the lease of a studio apartment in Blackheath in August 2012. We are asked if we could estimate the premium could be to prolong the lease by 90 years. Comparative premises in Blackheath with 100 year plus lease were valued about £168,800. The average amount of ground rent was £60 collected per annum. The lease lapsed on 5 May 2081. Having 55 years outstanding we calculated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 not including costs.

Decision in Lewisham

An example of a Lease Extension matter before the tribunal for a Blackheath residence 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.