Blakelaw leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Most owners of residential leasehold property in Blakelaw enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Blakelaw you must investigate if your lease has between seventy and 90 years left. There are good reasons why a Blakelaw flat owner with a lease having around eighty years left should take steps to make sure that a lease extension is put in place without delay
It is generally considered that a residential leasehold with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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. |
Regardless of whether you are a tenant or a landlord in Blakelaw,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Blakelaw valuers.
During the course of the last few months Jake, started to get close to the 80-year mark with the lease on his leasehold flat in Blakelaw. Having bought his home 19 years ago, the lease term was of minimal importance. by good luck, he recognised he needed to take action soon on a lease extension. Jake extended the lease just ahead of time in May. Jake and the freeholder via the management company in the end agreed on sum of £5,500 . If he failed to meet the deadline, the sum would have become more costly by at least £1,150.
In 2013 we were e-mailed by Mr and Mrs. L Ricardo who, having completed a recently refurbished flat in Blakelaw in November 2000. The question was if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year lease extension. Identical flats in Blakelaw with an extended lease were valued around £208,200. The mid-range ground rent payable was £65 collected per annum. The lease lapsed on 13 February 2086. Given that there were 61 years remaining we estimated the compensation to the freeholder to extend the lease to be within £19,000 and £22,000 exclusive of professional charges.
Dr T García purchased a newly refurbished flat in Blakelaw in October 2012. We are asked if we could approximate the price could be to extend the lease by ninety years. Comparative premises in Blakelaw with a long lease were valued around £260,000. The average ground rent payable was £50 billed every twelve months. The lease lapsed on 24 July 2097. Taking into account 72 years left we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus fees.