For those whose Blackwell flat is held on a long lease, the message is clear – if nothing is done, the property will ultimately revert to the freeholder, leaving you empty-handed. The shorter the lease the lower the value of the property and the more it will cost to procure a lease extension.
It is generally accepted that a property with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 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. |
| Halifax | 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. |
Retaining our service gives you increased control over the value of your Blackwell leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Gabriel owned a conversion flat in Blackwell on the market with a lease of a few days over 72 years outstanding. Gabriel informally approached his freeholder a well known London-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Gabriel to exercise his statutory right. Gabriel procured expert legal guidance and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
In 2010 we were e-mailed by Mrs T González who, having was assigned a lease of a purpose-built apartment in Blackwell in November 2002. The question was if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year lease extension. Comparative residencies in Blackwell with 100 year plus lease were in the region of £261,600. The mid-range amount of ground rent was £60 billed yearly. The lease terminated in 2077. Having 52 years unexpired we estimated the premium to the freeholder to extend the lease to be within £39,000 and £45,000 not including expenses.
Dr S Gunderson bought a one bedroom flat in Blackwell in February 2006. The question was if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by ninety years. Comparative properties in Blackwell with a long lease were in the region of £218,000. The average ground rent payable was £45 billed annually. The lease end date was in 2088. Having 63 years outstanding we calculated the compensation to the landlord for the lease extension to be within £17,100 and £19,800 plus professional charges.