Why you should start your Blackwall lease extension

Top reasons for lease extension now:

Increase your lease and increase your Blackwall property value

The market value of a leasehold property in Blackwall is impacted by how many years the lease has left to run. If it is close to or less than 80 years you should anticipate problems on re-sale, so it is advisable to arrange for the lease to be extended prior to purchasing. It is ideal to start the lease extension process when a lease still has 82 years unexpired so that formalities can be finalised well before the 80 year cut off point. Current legislation entitles Blackwall qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus a further term of ninety years. The intention of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.

Blackwall property with a lease extension has roughly the same value as a freehold

Leasehold premises in Blackwall with in excess of 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify it.

Banks and Building Societies will not lend with a short lease

Banks and building societies are making their criteria more stringent and many now require flats to have at least sixty if not seventy years left once the mortgage has expired. As plenty of flats in Blackwall were built in the 1950s, 1960s and 1970s as a result many now require lease extensions if they wish to get a mortgage.

Get in touch with one of our Blackwall lease extension solicitors or enfranchisement solicitors

Retaining our service gives you enhanced control over the value of your Blackwall leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Blackwall Lease Extension Example Cases:

Ali, Blackwall, London

Last year Ali, started to get close to the 80-year threshold with the lease on his basement flat in Blackwall. Having purchased his property two decades ago, the unexpired term was of no concern. Luckily, he noticed he needed to take steps soon on a lease extension. Ali extended the lease just ahead of time last July. Ali and the freeholder via the management company eventually settled on a premium of £5,000 . If he had missed the deadline, the figure would have become more costly by a minimum £925.

Blackwall case:

Mrs Sophia Miller acquired a first floor flat in Blackwall in June 1995. We are asked if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Comparable premises in Blackwall with 100 year plus lease were in the region of £254,200. The average amount of ground rent was £60 invoiced every twelve months. The lease elapsed in 2077. Given that there were 51 years as a residual term we approximated the premium to the landlord for the lease extension to be between £43,700 and £50,600 not including fees.