Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will normally be granted for a set period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Easthampstead. Inevitably, the period of lease remaining shortens as time goes by. This is often overlooked and only raises itself as an issue when the flat or house needs to be sold or re-mortgaged. The fewer the years remaining the less it is worth and the more expensive it will be to obtain a lease extension. Eligible long lease owners in Easthampstead have the right to extend the lease for an additional ninety years in accordance with legislation. Please give careful attention before delaying your Easthampstead lease extension. Putting off the cost now simply increases the price you will eventually incur to extend your lease
It is generally considered that a property with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Barnsley Building Society | |
| Chelsea Building Society | |
| National Westminster Bank | |
| Skipton Building Society |
Engaging our service will provide you increased control over the value of your Easthampstead leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Leo owned a 2 bedroom apartment in Easthampstead on the market with a lease of a few days over 72 years outstanding. Leo on an informal basis contacted his landlord being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £125 annually. Ordinarily, ground rent would not be payable on a lease extension were Leo to exercise his statutory right. Leo obtained expert advice and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
Last July we were contacted by Mr Caleb Bennett , who owned a ground floor flat in Easthampstead in May 1995. We are asked if we could shed any light on how much (approximately) price would be for a ninety year extension to my lease. Comparable residencies in Easthampstead with an extended lease were worth £300,000. The mid-range ground rent payable was £50 billed every twelve months. The lease elapsed on 21 June 2101. Given that there were 75 years remaining we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus fees.
In 2010 we were approached by Mr and Mrs. J Ali who, having bought a one bedroom flat in Easthampstead in April 1999. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Identical properties in Easthampstead with 100 year plus lease were valued around £250,400. The average amount of ground rent was £65 invoiced yearly. The lease terminated in 2090. Given that there were 64 years outstanding we calculated the premium to the freeholder for the lease extension to be within £19,000 and £22,000 exclusive of expenses.