The re-sale value of a leasehold property in Blakenhall is impacted by how long the lease has remaining. If it is near to or fewer than 80 years you should envisage problems on re-sale, so it is recommended to arrange for the lease to be extended ahead of purchasing. It is preferable to start the lease extension process when a lease still has 82 years to run so that formalities can be addressed ahead of the 80 year threshold. Leasehold Reform legislation entitles Blakenhall qualifying lessees to acquire a lease extension of ninety years on top of the remaining lease term at a peppercorn rent (that is, rent free). The purpose of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
The conveyancing solicitors that we work with handle Blakenhall 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.
Trailing unsuccessful negotiations with the landlord of her garden apartment in Blakenhall, Jessica started the lease extension process just as the lease was coming close to the all-important 80-year threshold. The legal work was concluded in May 2007. The freeholder’s fees were negotiated to under 650 GBP.
Last Autumn we were called by Mr B Scott , who was assigned a lease of a basement flat in Blakenhall in August 2006. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year lease extension. Identical homes in Blakenhall with 100 year plus lease were valued around £260,000. The average ground rent payable was £50 billed annually. The lease lapsed on 26 February 2097. Taking into account 72 years as a residual term we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of costs.
In 2009 we were approached by Mr and Mrs. P Mercier who, having took over the lease of a one bedroom apartment in Blakenhall in August 1996. The question was if we could estimate the premium would likely be for a 90 year extension to my lease. Identical premises in Blakenhall with an extended lease were valued about £261,600. The average ground rent payable was £60 invoiced quarterly. The lease finished on 28 March 2077. Considering the 52 years left we calculated the premium to the freeholder for the lease extension to be between £39,000 and £45,000 exclusive of expenses.