Blackwell leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Legislation has been in place for sometime now which entitles qualifying Blackwell residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Blackwell you must investigate if your lease has between seventy and ninety years remaining. There are compelling reasons why a Blackwell leaseholder with a lease having around 80 years remaining should take action to make sure that a lease extension is actioned without delay
Leasehold residencies in Blackwell with in excess of one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with undertake Blackwell lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
In the wake of 9 months of unsuccessful correspondence with the freeholder of her studio apartment in Blackwell, Jade started the lease extension process as the 80 year mark was quickly advancing. The transaction completed in January 2006. The landlord’s charges were restricted to about 700 GBP.
In 2010 we were called by Dr Mollie Khan who, having bought a garden apartment in Blackwell in September 2007. We are asked if we could approximate the premium would be to prolong the lease by ninety years. Comparative premises in Blackwell with 100 year plus lease were worth £260,000. The average ground rent payable was £50 invoiced monthly. The lease ended in 2096. Given that there were 71 years unexpired we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.
Mr and Mrs. V Taylor purchased a ground floor flat in Blackwell in February 2008. The question was if we could shed any light on how much (approximately) price could be to extend the lease by 90 years. Identical homes in Blackwell with 100 year plus lease were worth £254,200. The average ground rent payable was £60 billed monthly. The lease expired in 2076. Having 51 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £43,700 and £50,600 plus legals.