Chances are that where you own a flat in Blackwell you actually own a long leasehold interest over your property
Leasehold residencies in Blackwell with in excess of 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances 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. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless 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 experience and the close ties they enjoy with Blackwell valuers.
Half a year ago Freddie, came seriously close to the 80-year mark with the lease on his first floor flat in Blackwell. In buying his home two decades ago, the length of the lease was of minimal relevance. Fortunately, he became aware that he needed to take steps soon on Extending the lease. Freddie arranged for a lease extension just under the wire in April. Freddie and the freeholder via the managing agents in the end settled on sum of £6,000 . If he not met the deadline, the premium would have become more exhorbitant by at least £850.
In 2013 we were contacted by Ms H Peterson who, having bought a basement flat in Blackwell in April 2012. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by 90 years. Similar homes in Blackwell with an extended lease were in the region of £275,000. The average ground rent payable was £55 billed quarterly. The lease lapsed on 26 September 2101. Taking into account 76 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.
Mr and Mrs. A Campbell bought a first floor flat in Blackwell in February 2002. The dilemma was if we could estimate the premium would be for a 90 year extension to my lease. Comparable properties in Blackwell with 100 year plus lease were valued around £176,200. The mid-range ground rent payable was £65 invoiced per annum. The lease ended on 4 June 2081. Taking into account 56 years unexpired we estimated the premium to the landlord to extend the lease to be between £29,500 and £34,000 not including costs.