Blakeney leases on residential properties are gradually losing value. Where your lease has about ninety years remaining, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for your lease extension to be in place before the term of the existing lease dips below eighty years - otherwise a higher premium will be payable. Leasehold owners in Blakeney will mostly qualify for a lease extension; however It would be wise to check with a conveyancer to check your eligibility. In certain situations you may not qualify. There are also strict deadlines and formalities to follow once the process has started so it’s prudent to be guided by a conveyancer during the process.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Lease extensions in Blakeney can be a difficult process. We recommend you obtain professional help from a conveyancer and surveyor 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 in-depth market knowledge dealing with Blakeney lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Kai owned a conversion flat in Blakeney on the market with a lease of a few days over fifty eight years unexpired. Kai informally contacted his freeholder a well known local-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 annually. No ground rent would be due on a lease extension were Kai to exercise his statutory right. Kai procured expert advice and was able to make a more informed judgement and deal with the matter and readily saleable.
Last September we were called by Mr and Mrs. K Wilson , who moved into a recently refurbished apartment in Blakeney in January 2010. We are asked if we could estimate the premium would likely be for a ninety year extension to my lease. Comparable premises in Blakeney with a long lease were worth £260,000. The average amount of ground rent was £50 collected every twelve months. The lease finished on 3 October 2098. Considering the 72 years unexpired we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus professional charges.
In 2013 we were phoned by Dr David Smith who, having was assigned a lease of a purpose-built apartment in Blakeney in June 2003. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Identical flats in Blakeney with an extended lease were valued around £261,600. The average amount of ground rent was £60 billed per annum. The lease ran out on 20 June 2078. Given that there were 52 years remaining we estimated the premium to the freeholder to extend the lease to be between £39,000 and £45,000 not including professional charges.