Blackwood leases on domestic deteriorating in value. if your lease has in the region of 90 years unexpired, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for your lease extension to take place before the term of the current lease falls below 80 years - otherwise a higher amount will be due. Leasehold owners in Blackwood will mostly qualify for a lease extension; however a solicitor will check your eligibility. In certain situations you may not be entitled. There are also strict timetables and procedures to comply with once the process has started so it’s prudent to be guided by a conveyancer during the process.
Leasehold premises in Blackwood with in excess of 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
| Yorkshire 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. |
The lawyers that we work with handle Blackwood 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 conveyancer we work with provide it.
Eliot owned a studio apartment in Blackwood being marketed with a lease of just over 59 years unexpired. Eliot informally contacted his landlord being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £125 per annum. No ground rent would be due on a lease extension were Eliot to exercise his statutory right. Eliot procured expert legal guidance and was able to make a more informed decision and handle with the matter and readily saleable.
Last Winter we were phoned by Mr Stanley Díaz , who acquired a basement flat in Blackwood in May 2007. The question was if we could approximate the premium would be to prolong the lease by ninety years. Comparable flats in Blackwood with a long lease were worth £198,800. The mid-range ground rent payable was £55 invoiced per annum. The lease end date was in 2081. Given that there were 55 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £33,300 and £38,400 plus fees.
In 2013 we were contacted by Dr K Cox who, having completed a studio apartment in Blackwood in March 2012. The dilemma was if we could approximate the price could be for a 90 year lease extension. Identical premises in Blackwood with an extended lease were worth £300,000. The average amount of ground rent was £50 collected monthly. The lease elapsed on 15 March 2101. Taking into account 75 years unexpired we approximated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of legals.