Main reasons to start your Blakenhall lease extension

Main reasons to commence your Blakenhall lease extension today:

A Blakenhall leasehold property depreciates with the years remaining on the lease.

The market value of a leasehold property in Blakenhall depends on how many years the lease has remaining. If it is close to or less than eighty years you should expect difficulties on re-sale, so it is recommended to arrange for a lease extension before buying. It is preferable to start the lease extension process when a lease still has 82 years to run so that formalities can be concluded in advance 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 intention of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.

An extended lease is almost the same value as a freehold

Leasehold residencies in Blakenhall with in excess of 100 years remaining 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 to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.

Mortgage lenders may decide not to issue a mortgage on a short lease

Lenders are tightening their criteria and a meaningful number now want flats to have at least sixty if not seventy years remaining once the mortgage has expired. Considering plenty of flats in Blakenhall were built in the fifties, sixties and seventies as a result many now require lease extensions if they if they are to be mortgageable.

Get in touch with one of our Blakenhall lease extension solicitors or enfranchisement solicitors

Irrespective of whether you are a tenant or a landlord in Blakenhall,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Blakenhall valuers.

Blakenhall Lease Extension Case Summaries:

Tommy, Blakenhall, Birmingham

Last year Tommy, started to get near to the eighty-year mark with the lease on his garden flat in Blakenhall. Having purchased his flat 19 years ago, the lease term was of no concern. Thankfully, he recognised he would soon be paying way over the odds for Extending the lease. Tommy arranged for a lease extension just under the wire in May. Tommy and the landlord who owned the flat above in the end agreed on the final figure of £5,000 . If he not met the deadline, the premium would have become more exhorbitant by at least £1,000.

Blakenhall case:

Mr and Mrs. D Jones owned a one bedroom flat in Blakenhall in June 1995. The dilemma was if we could approximate the premium could be to extend the lease by ninety years. Comparative flats in Blakenhall with 100 year plus lease were valued about £250,000. The mid-range amount of ground rent was £50 billed quarterly. The lease finished on 25 September 2095. Taking into account 69 years unexpired we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus expenses.

Blakenhall case:

Last month we were e-mailed by Ms T Bonnet , who bought a purpose-built apartment in Blakenhall in June 2012. We are asked if we could shed any light on how much (approximately) price could be to extend the lease by ninety years. Identical premises in Blakenhall with a long lease were worth £285,000. The mid-range amount of ground rent was £55 collected yearly. The lease elapsed on 7 August 2106. Having 80 years outstanding we estimated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of professional charges.