Main reasons to commence your Blackwood lease extension

Top reasons for lease extension now:

Increase your lease and increase your Blackwood property value

Unfortunately that a Blackwood residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Blackwood property prices.Once your lease gets to 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips below 80 years - otherwise a higher premium will be due. Most leasehold owners in Blackwood will be able to extend under the legislation; however a conveyancer will be able to confirm if you are eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer throughout the formalities.

Blackwood property with a lease extension is almost the same value as a freehold

It is conventional wisdom that a property with over 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.

Banks and Building Societies will not loan monies on a short lease

Lenders are making their criteria more stringent and many now require flats to have a minimum of sixty if not seventy years remaining once the mortgage has expired. Given that many flats in Blackwood were created in the 1950s, 1960s and 1970s as a result many now need to be extended if they wish to get a mortgage.

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

Regardless of whether you are a tenant or a landlord in Blackwood,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Blackwood valuers.

Blackwood Lease Extension Example Cases:

Samuel, Blackwood, Caerphilly,

Samuel owned a studio flat in Blackwood on the market with a lease of just over 59 years left. Samuel on an informal basis spoke with his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 annually. Ordinarily, ground rent would not be due on a lease extension were Samuel to exercise his statutory right. Samuel obtained expert legal guidance and was able to make an informed judgement and handle with the matter and sell the property.

Blackwood case:

Ms Leah Anderson acquired a garden flat in Blackwood in July 2009. The dilemma was if we could approximate the premium could be to extend the lease by 90 years. Similar homes in Blackwood with a long lease were valued around £225,800. The mid-range amount of ground rent was £60 billed per annum. The lease ran out on 3 April 2086. Taking into account 60 years as a residual term we calculated the premium to the landlord to extend the lease to be within £24,700 and £28,600 not including legals.

Blackwood case:

Mr Caleb Edwards acquired a purpose-built flat in Blackwood in June 2006. We are asked if we could approximate the premium would likely be to extend the lease by an additional years. Comparable homes in Blackwood with an extended lease were in the region of £210,000. The mid-range ground rent payable was £50 invoiced annually. The lease came to a finish in 2106. Given that there were 80 years remaining we estimated the premium to the landlord to extend the lease to be within £8,600 and £9,800 not including expenses.