Owning a flat usually means owning a lease of the property, which has a set term of years. your lease will usually be granted for a prescribed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Blackpool. Inevitably, the term of lease remaining reduces as time goes by. This is often overlooked and only becomes a problem when the property has to be disposed of or re-mortgaged. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease. Qualifying leaseholders in Blackpool have the right to extend the lease for a further 90 years under legislation. Please give careful deliberation before putting off your Blackpool lease extension. Holding off the cost now simply increases the price you will ultimately have to pay to extend your lease
Leasehold properties in Blackpool with more than one hundred years left on the lease are sometimes regarded as a ‘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 buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| 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; |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Blackpool,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 Blackpool valuers.
Last year Aarav, came precariously near to the eighty-year threshold with the lease on his leasehold flat in Blackpool. Having bought his property two decades ago, the unexpired term was of minimal relevance. by good luck, it dawned on him that he would soon be paying an inflated amount for a lease extension. Aarav extended the lease just under the wire last September. Aarav and the freeholder via the management company ultimately agreed on an amount of £6,000 . If the lease had descended to less than eighty years, the premium would have escalated by at least £950.
Last month we were contacted by Dr Jasmine Morris , who purchased a one bedroom flat in Blackpool in April 1999. The dilemma was if we could approximate the premium would be for a ninety year extension to my lease. Similar flats in Blackpool with 100 year plus lease were valued around £270,000. The mid-range amount of ground rent was £55 billed monthly. The lease terminated in 2101. Considering the 75 years remaining we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including legals.
Dr Isabelle Roberts was assigned a lease of a ground floor apartment in Blackpool in May 1995. The question was if we could approximate the price would be for a ninety year lease extension. Comparative residencies in Blackpool with a long lease were valued around £173,800. The average ground rent payable was £65 collected monthly. The lease finished in 2081. Having 55 years as a residual term we calculated the premium to the landlord to extend the lease to be between £31,400 and £36,200 exclusive of fees.