When it comes to residential leasehold property in Blackwood, you effectively rent it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably when there are less than eighty years left. Anyone in Blackwood with a lease nearing 81 years unexpired should seriously think of extending it sooner as opposed to later. Once the lease term has under 80 years outstanding, under the relevant statute the landlord can calculate and charge a larger amount, based on a technical multiplication, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| 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. |
| 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; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Lease extensions in Blackwood can be a difficult process. We recommend you secure professional help from a conveyancer and valuer 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 a wealth of experience 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.
In the wake of 6 months of unsuccessful discussions with the freeholder of her two bedroom apartment in Blackwood, Isabelle initiated the lease extension process as the 80 year mark was rapidly approaching. The lease extension was concluded in November 2015. The landlord’s fees were kept to an absolute minimum.
In 2012 we were approached by Dr A Mercier who, having acquired a one bedroom flat in Blackwood in November 2008. The question was if we could approximate the premium would be to prolong the lease by 90 years. Similar premises in Blackwood with an extended lease were worth £171,800. The mid-range ground rent payable was £55 billed annually. The lease elapsed in 2075. Having 50 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £32,300 and £37,400 plus professional charges.
Last year we were phoned by Mr Joseph Vincent , who owned a purpose-built apartment in Blackwood in November 2001. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year lease extension. Identical premises in Blackwood with 100 year plus lease were in the region of £280,000. The mid-range amount of ground rent was £45 collected quarterly. The lease finished in 2095. Considering the 70 years remaining we calculated the premium to the landlord to extend the lease to be within £12,400 and £14,200 not including legals.