Blackwall leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. It is the case that most Blackwall tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Blackwall you should investigate if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Lease extensions in Blackwall can be a difficult process. We recommend you procure guidance from a conveyancer and surveyor 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 a wealth of experience dealing with Blackwall lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Luca, came seriously near to the eighty-year threshold with the lease on his garden apartment in Blackwall. Having purchased his home two decades ago, the length of the lease was of no interest. As luck would have it, he noticed he needed to take steps soon on Extending the lease. Luca arranged for a lease extension at the eleventh hour in March. Luca and the landlord who owned the flat above ultimately agreed on an amount of £5,000 . If the lease had slid to less than eighty years, the amount would have gone up by at least £925.
Last month we were called by Mrs Imogen Khan , who took over the lease of a ground floor apartment in Blackwall in February 2001. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year extension to my lease. Comparable flats in Blackwall with 100 year plus lease were valued about £225,400. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease terminated in 2090. Having 64 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £15,200 and £17,600 exclusive of legals.
An example of a Freehold Enfranchisement matter before the tribunal for a Blackwall flat is 12, 14 & 16 Hull Close in May 2010. the Tribunal determined that the premium payable for the acquisition of the freehold to the subject premises was the sum of £18,300 This case affected 3 flats. The number of years remaining on the existing lease(s) was 101.61 years.