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Main reasons to start your Blakeney lease extension


Main reasons to start your Blakeney lease extension today:

A Blakeney lease depreciates with the years remaining on the lease.

With a residential leasehold premises in Blakeney, you are actually purchasing an entitlement to live in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive especially when there are less than eighty years remaining. Leasehold owners in Blakeney with a lease nearing 81 years left should seriously consider extending it without delay. Once a lease has under eighty years remaining, under the current statute the freeholder is entitled to calculate and demand a larger premium, based on a technical multiplication, known as “marriage value” which is payable.

An extended lease has roughly the same value as a freehold

It is generally considered that a residential leasehold with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the premises will be worth the same as a freehold for many years in the future.

Lending institutions may decide not to grant a mortgage with a short lease

Mortgage Lenders are distinct in their lending requirements. Some draw the line at 75 years left on the lease; others may be prepared to lend with anything in excess 70 years. Below 60 years, it may be impossible to obtain a mortgage at all.

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.
Halifax Minimum 70 years from the date of the mortgage.
Lloyds TSB Scotland Minimum 70 years from the date of the mortgage.
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.

What makes us experts in Blakeney lease extensions?

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.

Blakeney Lease Extension Example Cases:

Daniel, Blakeney, Gloucestershire

Two years ago Daniel, came perilously near to the 80-year mark with the lease on his purpose- built apartment in Blakeney. Having purchased his home twenty years previously, the length of the lease was of little interest. by good luck, he realised he would soon be paying an escalated premium for a lease extension. Daniel arranged for a lease extension just in the nick of time in April. Daniel and the landlord ultimately agreed on an amount of £6,000 . If he had missed the deadline, the premium would have gone up by a minimum £1,000.

Blakeney case:

Last Autumn we were contacted by Mr W Ricardo , who took over the lease of a studio flat in Blakeney in August 2003. The dilemma was if we could approximate the premium would likely be for a 90 year extension to my lease. Comparable flats in Blakeney with an extended lease were worth £265,000. The mid-range ground rent payable was £50 collected monthly. The lease lapsed on 21 March 2097. Given that there were 73 years unexpired we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including legals.

Blakeney case:

Last Christmas we were contacted by Mr and Mrs. H Pérez , who moved into a ground floor apartment in Blakeney in October 2009. We are asked if we could approximate the premium would be to prolong the lease by ninety years. Identical properties in Blakeney with 100 year plus lease were in the region of £264,000. The average ground rent payable was £60 billed per annum. The lease expired on 15 August 2077. Taking into account 53 years outstanding we calculated the premium to the landlord for the lease extension to be between £37,100 and £42,800 exclusive of legals.