The value of Blackwell 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 significantly once the remaining term is below than 80 years
Leasehold properties in Blackwell with in excess of one hundred years outstanding 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 property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you better control over the value of your Blackwell leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Harry was the the leasehold proprietor of a studio flat in Blackwell on the market with a lease of a few days over 61 years remaining. Harry informally approached his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 annually. Ordinarily, ground rent would not be due on a lease extension were Harry to exercise his statutory right. Harry procured expert legal guidance and was able to make an informed decision and deal with the matter and readily saleable.
Dr U Bernard bought a one bedroom apartment in Blackwell in November 2009. We are asked if we could shed any light on how much (approximately) premium would likely be to prolong the lease by ninety years. Comparative properties in Blackwell with 100 year plus lease were valued about £235,200. The average amount of ground rent was £45 billed yearly. The lease finished in 2092. Given that there were 66 years remaining we estimated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 not including fees.
In 2009 we were phoned by Mr and Mrs. M Campbell who, having purchased a purpose-built apartment in Blackwell in February 1996. The dilemma was if we could approximate the premium would be to extend the lease by a further 90 years. Similar homes in Blackwell with an extended lease were valued about £280,000. The average ground rent payable was £55 billed quarterly. The lease came to a finish on 23 August 2103. Having 77 years remaining we approximated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of expenses.