Blackwood leases on domestic properties are gradually losing value. if your lease has in the region of 90 years unexpired, you should start considering the need for a lease extension. An important point to note is that it is desirable for the lease extension to be in place before the term of the current lease drops below 80 years - otherwise a higher premium will be payable. Leasehold owners in Blackwood will usually qualify for a lease extension; however It would be wise to check with a conveyancer to confirm your eligibility. In some circumstances you may not qualify. There are prescribed timetables and steps to follow once the process is triggered so it’s prudent to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Blackwood with over 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
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 want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Michael owned a 2 bedroom flat in Blackwood on the market with a lease of fraction over fifty eight years remaining. Michael informally contacted his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Michael to invoke his statutory right. Michael procured expert advice and was able to make a more informed decision and deal with the matter and readily saleable.
Last Autumn we were approach by Mr and Mrs. E Smith , who was assigned a lease of a newly refurbished apartment in Blackwood in March 2003. The question was if we could shed any light on how much (approximately) premium could be for a ninety year lease extension. Comparable homes in Blackwood with 100 year plus lease were worth £205,000. The mid-range amount of ground rent was £50 invoiced every twelve months. The lease termination date was in 2104. Given that there were 78 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 not including expenses.
Dr Lucy Hernández acquired a recently refurbished apartment in Blackwood in May 2002. The question was if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year lease extension. Comparative properties in Blackwood with a long lease were in the region of £267,600. The mid-range ground rent payable was £65 collected monthly. The lease expiry date was in 2093. Given that there were 67 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £14,300 and £16,400 exclusive of legals.