The value of Blackwood leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase materialy once the remaining term is less than 80 years
Leasehold premises in Blackwood with in excess of 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
Lease extensions in Blackwood can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
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 a wealth of experience procuring Blackwood lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Lucas, came perilously close to the 80-year threshold with the lease on his basement flat in Blackwood. Having purchased his home two decades ago, the length of the lease was of no bearing. Luckily, he recognised he would soon be paying an inflated amount for Extending the lease. Lucas arranged for a lease extension at the eleventh hour in April. Lucas and the freeholder in the end agreed on sum of £5,000 . If the lease had dipped to less than 80 years, the price would have gone up by at least £975.
In 2010 we were contacted by Mr and Mrs. M Torres who, having took over the lease of a one bedroom apartment in Blackwood in April 2005. The question was if we could shed any light on how much (approximately) premium could be to extend the lease by 90 years. Comparable flats in Blackwood with an extended lease were in the region of £275,000. The average amount of ground rent was £45 billed per annum. The lease ended in 2094. Given that there were 69 years left we calculated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 not including expenses.
Mr and Mrs. T Edwards moved into a newly refurbished flat in Blackwood in July 2003. We are asked if we could approximate the premium could be to prolong the lease by an additional years. Similar flats in Blackwood with 100 year plus lease were valued about £216,000. The average amount of ground rent was £60 billed monthly. The lease ended on 25 January 2083. Considering the 58 years unexpired we estimated the premium to the landlord to extend the lease to be within £28,500 and £33,000 exclusive of professional charges.