Why you should start your Blackwall lease extension

Why you should start your Blackwall lease extension today:

A Blackwall lease depreciates with the years remaining on the lease.

There is no doubt about it a leasehold property in Blackwall is a wasting asset as a result of the diminishing lease term. Where the residual term has, over one hundred years to run then this decrease may be negligible nevertheless there will become a stage when a lease has fewer than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary logic behind why you should consider extending without delay. Most flat owners in Blackwall will meet the qualifying criteria; however a lawyer can advise whether you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.

An extended lease is almost the same value as a freehold

It is generally accepted that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.

Lending institutions will not issue a mortgage on a short lease

The propensity since over the last decade has been for banks to tighten lending requirements generally - this has extended to the property over which the mortgage is to be charged. This has resulted in the minimum number of years remaining under the lease required by banks has increased. Historically mortgage companies would lend on a lease with 25 years plus the term of the loan - routinely fifty year leases but those requirements evolved by the requirement for lengthy leases - many use a minimum term of 75 years as a prerequisite.

What makes us experts in Blackwall lease extensions?

Lease extensions in Blackwall can be a difficult process. We recommend you get guidance 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 Blackwall lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Blackwall Lease Extension Case Summaries:

Charlie, Blackwall, London,

Charlie owned a studio apartment in Blackwall on the market with a lease of fraction over fifty eight years unexpired. Charlie informally contacted his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Charlie to exercise his statutory right. Charlie procured expert advice and secured an acceptable deal without going to tribunal and readily saleable.

Blackwall case:

Mrs W Brown was assigned a lease of a studio flat in Blackwall in September 2002. The dilemma was if we could shed any light on how much (roughly) price would likely be for a ninety year extension to my lease. Similar properties in Blackwall with a long lease were valued around £260,000. The average ground rent payable was £50 billed monthly. The lease finished in 2097. Given that there were 71 years left we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus legals.