There is no doubt about it a leasehold flat or house in Booker is a wasting asset as a result of the diminishing lease term. If the residual term has, more than 100 years remaining then this decrease may be fractional that being said there will become a point in time when a lease has under than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary logic behind why you should consider extending sooner as opposed to later. Most flat owners in Booker will qualify for this right; however a conveyancer can confirm whether you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is generally accepted that a residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the property will be equivalent in value to a freehold for many years ahead.
Lender | Requirement |
---|---|
Bank of Scotland | Minimum 70 years from the date of the mortgage. |
Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
Halifax | Minimum 70 years from the date of the mortgage. |
Leeds Building Society | 85 years remaining from the start of the mortgage. |
TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service will provide you increased control over the value of your Booker leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Following protracted correspondence with the landlord of her two bedroom flat in Booker, Jennifer started the lease extension process just as her lease was coming close to the critical 80-year mark. The lease extension was finalised in February 2012. The landlord’s costs were kept to an absolute minimum.
Last Winter we were called by Mr and Mrs. R López , who moved into a purpose-built flat in Booker in March 2001. The dilemma was if we could estimate the premium could be for a ninety year extension to my lease. Comparable premises in Booker with a long lease were valued around £280,000. The average ground rent payable was £55 invoiced every twelve months. The lease came to a finish in 2102. Having 78 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of expenses.
Last Summer we were phoned by Ms W Nelson , who took over the lease of a first floor apartment in Booker in November 2010. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by 90 years. Comparative homes in Booker with 100 year plus lease were valued around £191,000. The average ground rent payable was £65 billed per annum. The lease finished on 17 April 2082. Given that there were 58 years remaining we approximated the premium to the freeholder for the lease extension to be between £23,800 and £27,400 exclusive of expenses.