There is no doubt about it a leasehold property in Blackwood is a wasting asset as a result of the shortening lease. If the lease has, in excess of one hundred years to run then this decrease may be negligible nevertheless there will become a stage when a lease has fewer than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should consider extending sooner as opposed to later. The majority of flat owners in Blackwood will qualify for this right; that being said a conveyancing solicitor will be able to advise if you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Lease extensions in Blackwood can be a difficult process. We recommend you procure professional help from a lawyer and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Blackwood lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing protracted correspondence with the landlord of her two bedroom flat in Blackwood, Kayleigh commenced the lease extension process as the 80 year mark was fast approaching. The legal work was concluded in September 2007. The freeholder’s costs were negotiated to approximately 500 GBP.
In 2014 we were phoned by Mr and Mrs. C Vincent who, having took over the lease of a ground floor flat in Blackwood in June 2009. We are asked if we could approximate the premium would likely be to extend the lease by ninety years. Identical premises in Blackwood with an extended lease were worth £243,000. The average amount of ground rent was £65 collected per annum. The lease lapsed on 27 May 2089. Considering the 63 years remaining we approximated the premium to the freeholder to extend the lease to be between £20,000 and £23,000 exclusive of professional charges.
In 2010 we were contacted by Mr and Mrs. O Bertrand who, having completed a recently refurbished apartment in Blackwood in January 2005. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by ninety years. Comparative flats in Blackwood with a long lease were valued about £181,600. The average amount of ground rent was £55 billed per annum. The lease elapsed on 5 October 2078. Considering the 52 years outstanding we approximated the compensation to the landlord for the lease extension to be between £30,400 and £35,200 plus legals.