It’s a harsh certainty that a Blackpool residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Blackpool property market.Where your lease has approximately ninety years left, you should start thinking about a lease extension. If the number of years remaining falls below eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of flat owners in Blackpool will be able to extend under the legislation; however a lawyer will be able to confirm if you qualify for an extension. In some situations you may not be entitled. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
Leasehold residencies in Blackpool with more than 100 years remaining on the lease are often 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 buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire Building Society | 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. |
Irrespective of whether you are a tenant or a freeholder in Blackpool,the lease extension solicitors that we work with will always be prepared 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.
After unsuccessful correspondence with the freeholder of her purpose-built apartment in Blackpool, Sarah started the lease extension process just as the lease was coming close to the all-important eighty-year threshold. The lease extension completed in February 2015. The landlord’s fees were restricted to slightly above 600 GBP.
In 2010 we were phoned by Mr and Mrs. F Fournier who, having completed a one bedroom apartment in Blackpool in May 2005. We are asked if we could shed any light on how much (roughly) price could be for a ninety year lease extension. Comparable residencies in Blackpool with 100 year plus lease were valued around £280,000. The mid-range ground rent payable was £55 invoiced annually. The lease elapsed on 11 June 2104. Considering the 78 years left we estimated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of expenses.
Last Spring we were phoned by Ms W Bonnet , who was assigned a lease of a studio apartment in Blackpool in July 2012. We are asked if we could approximate the premium could be to extend the lease by a further 90 years. Identical premises in Blackpool with a long lease were worth £191,000. The mid-range amount of ground rent was £65 collected annually. The lease finished in 2084. Given that there were 58 years left we estimated the premium to the landlord for the lease extension to be within £23,800 and £27,400 not including fees.