Blakedown leases on residential properties are gradually losing value. if your lease has about 90 years unexpired, you should start considering the need for a lease extension. If lease term is less than eighty years, you will then have to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Blakedown will mostly qualify for a lease extension; however a solicitor should be able check your eligibility. In certain situations you may not be entitled. There are also strict deadlines and procedures to follow once the process is triggered so it’s sensible to be guided by a lawyer during the process.
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 further 90 years added to any lease with more than 45 years left, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service gives you increased control over the value of your Blakedown leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Hunter, came perilously close to the 80-year threshold with the lease on his studio flat in Blakedown. In buying his home two decades ago, the unexpired term was of no bearing. Fortunately, it dawned on him that he would imminently be paying an escalated premium for a lease extension. Hunter was able to extend his lease just in the nick of time last June. Hunter and the landlord ultimately settled on an amount of £5,000 . If the lease had fallen lower than 80 years, the amount would have increased by at least £1,150.
In 2014 we were called by Mr Aarav Taylor who, having took over the lease of a purpose-built flat in Blakedown in November 2007. The question was if we could shed any light on how much (roughly) price would likely be to prolong the lease by 90 years. Comparative flats in Blakedown with an extended lease were valued about £193,400. The mid-range amount of ground rent was £65 invoiced annually. The lease ended on 23 November 2085. Considering the 59 years left we calculated the compensation to the freeholder for the lease extension to be between £21,900 and £25,200 plus expenses.
Mr and Mrs. E Gray bought a ground floor apartment in Blakedown in August 1998. We are asked if we could approximate the compensation to the landlord could be for a ninety year lease extension. Identical homes in Blakedown with a long lease were worth £250,000. The average ground rent payable was £50 invoiced every twelve months. The lease expired in 2096. Given that there were 70 years outstanding we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including costs.