Blackwood leases on domestic deteriorating in value. if your lease has in the region of ninety years unexpired, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for the lease extension to take place before the term of the current lease falls lower than eighty years - otherwise a higher premium will be due. Flat owners in Blackwood will mostly qualify for a lease extension; however a solicitor should be able check your eligibility. In certain cases you may not qualify. There are prescribed timetables and steps to comply with once the process is initiated so it’s sensible to be guided by a conveyancing solicitor during the process.
It is generally considered that a property with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
The lawyers that we work with handle Blackwood lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Trailing lengthy negotiations with the landlord of her purpose-built apartment in Blackwood, Yasmin initiated the lease extension process just as the lease was coming close to the all-important 80-year deadline. The legal work was finalised in April 2008. The freeholder’s charges were kept to an absolute minimum.
In 2014 we were contacted by Mr Dylan Lefebvre who, having completed a first floor flat in Blackwood in April 2008. We are asked if we could approximate the premium could be for a ninety year extension to my lease. Comparative properties in Blackwood with 100 year plus lease were valued about £210,000. The average amount of ground rent was £50 invoiced yearly. The lease came to a finish on 12 November 2105. Considering the 80 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of professional charges.
Ms Victoria Stewart bought a one bedroom flat in Blackwood in May 2012. We are asked if we could approximate the premium would be to extend the lease by ninety years. Comparable properties in Blackwood with a long lease were worth £275,000. The average amount of ground rent was £45 billed monthly. The lease finished on 6 August 2094. Having 69 years left we estimated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of expenses.