It’s an underpublicised truth that a Blakenhall residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Blakenhall property market.Once your lease nears 85ish years, you should start thinking about a lease extension. If the number of years remaining falls under 80 years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property The majority of flat owners in Blakenhall will be able to extend under the legislation; however a conveyancer will be able to clarify if you are eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
Leasehold premises in Blakenhall with over one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Blakenhall,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Blakenhall valuers.
Jasper owned a conversion flat in Blakenhall on the market with a lease of a little over fifty eight years remaining. Jasper informally spoke with his freeholder being a well known London-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £150 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Jasper to exercise his statutory right. Jasper obtained expert legal guidance and secured satisfactory resolution without resorting to tribunal and ending up with a market value flat.
Mr and Mrs. O Jones owned a ground floor apartment in Blakenhall in June 2003. We are asked if we could estimate the premium could be for a 90 year lease extension. Comparative homes in Blakenhall with an extended lease were worth £265,000. The mid-range amount of ground rent was £55 billed monthly. The lease finished in 2100. Having 74 years remaining we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.
Dr Harrison García completed a ground floor apartment in Blakenhall in January 2006. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by an additional years. Comparable properties in Blakenhall with an extended lease were worth £166,400. The mid-range ground rent payable was £60 billed every twelve months. The lease expired on 12 July 2080. Considering the 54 years unexpired we approximated the compensation to the landlord to extend the lease to be between £32,300 and £37,400 plus costs.