Blackwood leases on domestic properties are gradually losing value. Where your lease has approximately ninety years unexpired, you should start considering the need for a lease extension. If lease term falls under 80 years, you will then have to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Blackwood will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm if you qualify. In some circumstances you may not be entitled. There are also strict deadlines and procedures to comply with once the process has commenced so it’s sensible to be guided by a conveyancer during the process.
It is generally considered that a property with more than 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service will provide you better control over the value of your Blackwood leasehold, as your property will be more valuable and marketable in respect of lease length should you wish 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.
Subsequent to unsuccessful negotiations with the freeholder of her garden apartment in Blackwood, Kayleigh initiated the lease extension process as the 80 year mark was fast approaching. The transaction was finalised in April 2011. The freeholder’s fees were kept to an absolute minimum.
Last year we were approach by Ms E Ward , who acquired a one bedroom flat in Blackwood in February 2005. The dilemma was if we could approximate the price would likely be to prolong the lease by ninety years. Comparative residencies in Blackwood with an extended lease were in the region of £260,200. The mid-range amount of ground rent was £65 billed annually. The lease terminated in 2091. Having 66 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £15,200 and £17,600 exclusive of professional charges.
Mr and Mrs. B Torres was assigned a lease of a recently refurbished apartment in Blackwood in May 2004. The question was if we could estimate the premium would be for a 90 year extension to my lease. Comparable premises in Blackwood with an extended lease were in the region of £198,800. The average ground rent payable was £55 collected monthly. The lease terminated on 19 November 2080. Taking into account 55 years left we approximated the compensation to the landlord for the lease extension to be between £33,300 and £38,400 not including costs.