Blakeney leases on residential properties are gradually losing value. Where your lease has about 90 years remaining, you should start thinking about a lease extension. If lease term dips under 80 years, you will then be required to pay half of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Blakeney will usually be legally entitled to a lease extension; however a solicitor will confirm your eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to comply with once the process is initiated so it’s best to be guided by a conveyancing solicitor during the process.
Leasehold premises in Blakeney with over one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
The conveyancing solicitors that we work with handle Blakeney lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
James was the the leasehold owner of a studio flat in Blakeney on the market with a lease of a little over sixty years outstanding. James informally contacted his landlord being a well known local-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were James to invoke his statutory right. James procured expert advice and secured satisfactory resolution informally and ending up with a market value flat.
In 2014 we were contacted by Mr and Mrs. J Ali who, having moved into a garden apartment in Blakeney in November 2009. The dilemma was if we could shed any light on how much (roughly) price would likely be for a ninety year extension to my lease. Identical premises in Blakeney with an extended lease were in the region of £191,000. The average ground rent payable was £65 collected every twelve months. The lease ran out in 2084. Having 58 years as a residual term we calculated the premium to the landlord to extend the lease to be within £23,800 and £27,400 exclusive of expenses.
Last year we were e-mailed by Mr and Mrs. M Brooks , who bought a one bedroom flat in Blakeney in April 1995. The dilemma was if we could approximate the compensation to the landlord could be to extend the lease by a further 90 years. Comparative flats in Blakeney with 100 year plus lease were valued around £250,000. The average amount of ground rent was £50 invoiced per annum. The lease ran out on 19 January 2095. Taking into account 69 years left we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of costs.