Blackpool leases on residential deteriorating in value. if your lease has approximately 90 years unexpired, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease drops below this level then you begin incurring an additional element called marriage value. Flat owners in Blackpool will usually be legally entitled to a lease extension; however a solicitor will confirm your eligibility. In certain circumstances you may not be entitled. There are prescribed timetables and procedures to follow once the process has commenced so it’s sensible to be guided by a conveyancing solicitor during the process.
Leasehold properties in Blackpool with more than 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Blackpool can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and valuer with experience in this area.
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 dealing with Blackpool lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Alexander, came dangerously close to the 80-year mark with the lease on his studio apartment in Blackpool. Having bought his property 19 years ago, the unexpired term was of little relevance. Thankfully, it dawned on him that he needed to take steps soon on Extending the lease. Alexander extended the lease just under the wire in July. Alexander and the landlord subsequently agreed on a premium of £5,500 . If the lease had dipped below eighty years, the premium would have become more exhorbitant by a minimum £1,100.
Last Winter we were e-mailed by Mr and Mrs. R Fournier , who purchased a first floor flat in Blackpool in January 2012. The question was if we could shed any light on how much (approximately) price would likely be to extend the lease by ninety years. Similar homes in Blackpool with 100 year plus lease were valued about £218,000. The average amount of ground rent was £45 billed every twelve months. The lease ended in 2088. Taking into account 63 years remaining we estimated the compensation to the freeholder for the lease extension to be within £17,100 and £19,800 not including expenses.
Last Autumn we were called by Dr Gabriel Dupont , who took over the lease of a ground floor flat in Blackpool in February 2012. The question was if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparative flats in Blackpool with an extended lease were worth £265,000. The average ground rent payable was £50 invoiced quarterly. The lease elapsed on 25 November 2098. Taking into account 73 years unexpired we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus costs.