The market value of Blackpool leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate materialy once the remaining term is less than eighty years
It is generally accepted that a property with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Lease extensions in Blackpool can be a difficult process. We recommend you get professional help from a conveyancer and valuer with experience in lease extensions.
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.
In the wake of 6 months of unsuccessful correspondence with the landlord of her two bedroom apartment in Blackpool, Hannah commenced the lease extension process as the 80 year threshold was quickly nearing. The legal work was finalised in June 2011. The freeholder’s fees were kept to an absolute minimum.
In 2009 we were called by Mr and Mrs. E Jones who, having owned a ground floor flat in Blackpool in July 2005. The question was if we could approximate the premium would be for a ninety year extension to my lease. Comparable premises in Blackpool with an extended lease were worth £275,000. The mid-range ground rent payable was £55 collected yearly. The lease ended on 2 September 2102. Considering the 76 years remaining we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus expenses.
Last year we were called by Mr and Mrs. G Khan , who moved into a garden flat in Blackpool in August 2002. We are asked if we could estimate the price could be to extend the lease by ninety years. Comparative premises in Blackpool with a long lease were valued about £176,200. The average amount of ground rent was £65 billed every twelve months. The lease came to a finish in 2082. Taking into account 56 years as a residual term we approximated the premium to the landlord for the lease extension to be within £29,500 and £34,000 plus costs.