With a long leasehold premises in Blakeney, you effectively rent it for a certain period 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 may consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive notably once there are fewer than 80 years remaining. Leasehold owners in Blakeney with a lease approaching 81 years remaining should seriously consider extending it sooner as opposed to later. When a lease has fewer than 80 years left, under the relevant statute the landlord is entitled to calculate and charge a larger amount, based on a technical computation, known as “marriage value” which is due.
It is generally considered that a property with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 30 years left, the residence will be equivalent in value to a freehold for many years ahead.
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Blakeney can be a difficult process. We recommend you get professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
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 in-depth market knowledge procuring Blakeney lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Oscar, came precariously close to the eighty-year threshold with the lease on his ground floor flat in Blakeney. Having purchased his property two decades ago, the unexpired term was of little bearing. Thankfully, he became aware that he needed to take action soon on a lease extension. Oscar arranged for a lease extension just under the wire in January. Oscar and the freeholder via the management company eventually agreed on a premium of £5,500 . If the lease had descended lower than eighty years, the price would have gone up by at least £1,150.
Last Christmas we were phoned by Mr and Mrs. A Baker , who purchased a studio apartment in Blakeney in June 1998. The question was if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by ninety years. Identical residencies in Blakeney with an extended lease were in the region of £254,200. The average ground rent payable was £60 billed monthly. The lease ended on 22 February 2077. Given that there were 51 years left we approximated the compensation to the landlord for the lease extension to be within £43,700 and £50,600 not including legals.
Last month we were contacted by Dr U Laurent , who took over the lease of a basement apartment in Blakeney in February 2009. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by ninety years. Similar homes in Blakeney with a long lease were valued around £215,600. The mid-range ground rent payable was £45 collected every twelve months. The lease finished in 2088. Taking into account 62 years remaining we estimated the compensation to the freeholder for the lease extension to be within £18,100 and £20,800 plus professional charges.