As the the remaining lease term of a Fallowfield domestic lease diminished so does its value and therefore the value of your property. Where the residual term has, in excess of one hundred years to run then this decrease may be of little impact that being said there will become a point in time when a lease has fewer than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary logic behind why you should consider extending sooner than later. Many flat owners in Fallowfield will meet the qualifying criteria; however a lawyer will be able to confirm whether you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally considered that a property with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Halifax | |
| National Westminster Bank | |
| Nationwide Building Society | |
| Royal Bank of Scotland |
Irrespective of whether you are a tenant or a landlord in Fallowfield,the lease extension solicitors 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 Fallowfield valuers.
Ryan was the the leasehold owner of a conversion apartment in Fallowfield on the market with a lease of fraction over 61 years remaining. Ryan informally contacted his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £125 yearly. Ordinarily, ground rent would not be due on a lease extension were Ryan to exercise his statutory right. Ryan obtained expert legal guidance and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
Mr and Mrs. U Patel moved into a one bedroom flat in Fallowfield in February 2011. We are asked if we could approximate the premium would be for a ninety year lease extension. Identical premises in Fallowfield with 100 year plus lease were worth £260,000. The average amount of ground rent was £50 collected annually. The lease ran out in 2097. Having 71 years remaining we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus legals.
In 2013 we were contacted by Mr and Mrs. C Rivera who, having acquired a basement apartment in Fallowfield in October 1995. The question was if we could shed any light on how much (roughly) price would be to extend the lease by 90 years. Comparable premises in Fallowfield with 100 year plus lease were worth £254,200. The average ground rent payable was £60 collected annually. The lease ended on 15 September 2077. Given that there were 51 years unexpired we calculated the premium to the landlord for the lease extension to be within £43,700 and £50,600 plus expenses.