Unfortunately that a Cross Keys residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Cross Keys property prices.Where your lease has approximately ninety years left, you should start considering a lease extension. If lease term drops under 80 years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of flat owners in Cross Keys will be able to extend under the legislation; however a lawyer will be able to confirm whether you qualify for an extension. In some cases you may not qualify. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the formalities.
Leasehold premises in Cross Keys with in excess of 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Coventry Building Society | |
| National Westminster Bank | |
| Royal Bank of Scotland | |
| Virgin |
The conveyancers that we work with procure Cross Keys 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 conveyancing solicitor we work with provide it.
Evan was the the leasehold proprietor of a conversion apartment in Cross Keys being marketed with a lease of a little over 61 years remaining. Evan on an informal basis spoke with his landlord a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £125 yearly. No ground rent would be payable on a lease extension were Evan to invoke his statutory right. Evan obtained expert advice and was able to make an informed decision and deal with the matter and readily saleable.
Mrs B Johnson purchased a garden apartment in Cross Keys in April 1998. We are asked if we could estimate the premium would likely be for a ninety year extension to my lease. Identical homes in Cross Keys with a long lease were worth £260,000. The average ground rent payable was £50 invoiced every twelve months. The lease concluded in 2098. Having 72 years remaining we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.
Dr W Baker completed a ground floor flat in Cross Keys in September 2004. We are asked if we could shed any light on how much (approximately) price could be to extend the lease by 90 years. Comparative residencies in Cross Keys with 100 year plus lease were in the region of £256,600. The average ground rent payable was £60 collected monthly. The lease expiry date was on 18 January 2078. Given that there were 52 years left we estimated the compensation to the freeholder for the lease extension to be between £39,000 and £45,000 not including costs.