Blakeney leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. It is the case that most Blakeney tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Blakeney you should see if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
Leasehold premises in Blakeney with in excess of 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges merit it.
| 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. |
| 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. |
| 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. |
| 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 |
| 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 secure guidance from a conveyancer and surveyor 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.
Kyle was the the leasehold owner of a studio apartment in Blakeney being sold with a lease of a few days over sixty years unexpired. Kyle informally contacted his landlord a well known local-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Kyle to exercise his statutory right. Kyle obtained expert advice and secured satisfactory resolution informally and readily saleable.
Last month we were contacted by Mrs Freya Clark , who completed a one bedroom flat in Blakeney in October 1997. The question was if we could shed any light on how much (roughly) premium would be for a 90 year extension to my lease. Comparable residencies in Blakeney with 100 year plus lease were worth £203,200. The average amount of ground rent was £65 invoiced every twelve months. The lease finished on 16 June 2086. Having 61 years left we estimated the compensation to the freeholder to extend the lease to be within £20,000 and £23,000 not including fees.
Mr and Mrs. W Martínez was assigned a lease of a one bedroom apartment in Blakeney in February 2008. The dilemma was if we could approximate the premium would be to prolong the lease by an additional years. Comparative residencies in Blakeney with an extended lease were in the region of £260,000. The mid-range ground rent payable was £50 collected yearly. The lease ran out on 22 June 2097. Considering the 72 years unexpired we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including costs.