Blackpool leases on residential properties are gradually losing value. if your lease has about 90 years unexpired, you should start considering the need for a lease extension. 80 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 It would be wise to check with a conveyancer to confirm if you qualify. In some circumstances you may not qualify. There are also strict timetables and procedures to follow once the process is initiated so it’s prudent to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the residence will be equivalent in value to a freehold for many years in the future.
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Blackpool,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Blackpool valuers.
Trailing protracted discussions with the landlord of her garden apartment in Blackpool, Olivia commenced the lease extension process as the 80 year deadline was rapidly approaching. The transaction was concluded in November 2011. The landlord’s costs were kept to an absolute minimum.
In 2012 we were e-mailed by Dr P Girard who, having owned a one bedroom flat in Blackpool in January 2005. The dilemma was if we could approximate the compensation to the landlord could be for a 90 year lease extension. Comparative properties in Blackpool with 100 year plus lease were worth £290,000. The mid-range amount of ground rent was £60 collected per annum. The lease lapsed on 11 April 2106. Having 80 years outstanding we approximated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of professional charges.
Last Autumn we were e-mailed by Mr C Rogers , who bought a purpose-built apartment in Blackpool in March 2007. We are asked if we could approximate the price would be for a ninety year lease extension. Identical residencies in Blackpool with 100 year plus lease were valued about £200,800. The mid-range amount of ground rent was £65 invoiced monthly. The lease came to a finish in 2086. Taking into account 60 years unexpired we approximated the compensation to the landlord for the lease extension to be within £20,900 and £24,200 exclusive of expenses.