Top reasons for Blackwell lease extension

Top reasons for lease extension now:

Increase your lease and increase your Blackwell property value

Blackwell residential property held on a long lease is a depreciating asset as the leaseholder only owns the property for a set term.

An extended lease is almost the same value as a freehold

Leasehold premises in Blackwell with more than one hundred years unexpired 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 circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.

Lending institutions may not lend with a short lease

The trend since over the last decade has been for lenders to tighten lending requirements generally - this has extended to the types of security over which the home loan is to be charged. This has resulted in the minimum number of years remaining under the lease required by lenders has increased. Historically mortgage companies were content with twenty years plus the term of the loan - routinely 50 year leases but those requirements evolved by the requirement for lengthy leases - many use a minimum term of 75 years as a prerequisite.

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

Irrespective of whether you are a tenant or a landlord in Blackwell,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Blackwell valuers.

Blackwell Lease Extension Case Studies:

Henry, Blackwell, Worcestershire

Last Autumn Henry, started to get close to the eighty-year mark with the lease on his purpose- built apartment in Blackwell. Having bought his flat 18 years ago, the lease term was of little interest. As luck would have it, he noticed he would imminently be paying an escalated premium for a lease extension. Henry was able to extend his lease just under the wire in June. Henry and the landlord who owned the flat above subsequently agreed on the final figure of £5,500 . If the lease had gone to less than 80 years, the premium would have gone up by at least £875.

Blackwell case:

Mr and Mrs. E Cook purchased a studio flat in Blackwell in April 2002. The question was if we could shed any light on how much (roughly) premium would likely be to extend the lease by ninety years. Comparative flats in Blackwell with a long lease were valued around £265,000. The average ground rent payable was £50 invoiced annually. The lease ended on 28 October 2099. Given that there were 73 years outstanding we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including legals.

Blackwell case:

In 2010 we were contacted by Mr Andrew François who, having purchased a ground floor apartment in Blackwell in May 2000. We are asked if we could approximate the price could be to prolong the lease by an additional years. Comparable residencies in Blackwell with an extended lease were worth £264,000. The average amount of ground rent was £60 collected quarterly. The lease end date was in 2079. Given that there were 53 years unexpired we calculated the compensation to the landlord for the lease extension to be between £37,100 and £42,800 not including professional charges.