Owning a flat usually means owning a lease of the property, which has a finite term of years. The lease will ordinarily be granted for a fixed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Blackwood. Inevitably, the term of lease left shortens as time goes by. This may slip by relatively unnoticed when the residence needs to be sold or re-mortgaged. The shorter the lease the less it is worth and the more expensive it will be to obtain a lease extension. Qualifying leaseholders in Blackwood have the legal entitlement to extend the lease for an additional ninety years in accordance with statute. Do give due deliberation before putting off your Blackwood lease extension. Holding off the cost now only increases the price you will eventually incur for a lease extension
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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. |
Retaining our service will provide you enhanced control over the value of your Blackwood leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of lengthy negotiations with the freeholder of her purpose-built apartment in Blackwood, Sophia started the lease extension process as the 80 year threshold was quickly advancing. The legal work completed in June 2007. The freeholder’s costs were kept to an absolute minimum.
In 2010 we were phoned by Mrs Abigail Bonnet who, having moved into a purpose-built apartment in Blackwood in February 2009. We are asked if we could approximate the premium would likely be to prolong the lease by 90 years. Comparable premises in Blackwood with 100 year plus lease were worth £240,600. The average amount of ground rent was £60 invoiced yearly. The lease expired on 19 May 2087. Taking into account 62 years remaining we calculated the premium to the freeholder to extend the lease to be within £21,900 and £25,200 not including professional charges.
Last November we were contacted by Dr O Cooper , who acquired a ground floor apartment in Blackwood in June 1998. We are asked if we could approximate the price could be for a ninety year extension to my lease. Identical flats in Blackwood with an extended lease were worth £174,200. The mid-range ground rent payable was £55 billed every twelve months. The lease ran out on 19 July 2076. Considering the 51 years left we estimated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 plus legals.