Fallowfield residential property owned on a long lease is a depreciating asset because a leaseholder only owns the property for a set term.
Leasehold premises in Fallowfield with over 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Godiva Mortgages | |
| TSB | |
| Virgin | |
| Yorkshire Building Society |
Retaining our service gives you increased control over the value of your Fallowfield leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Blake, came seriously near to the eighty-year threshold with the lease on his purpose- built flat in Fallowfield. In buying his home two decades ago, the length of the lease was of little relevance. Luckily, he recognised he needed to take steps soon on a lease extension. Blake arranged for a lease extension just in the nick of time in April. Blake and the landlord ultimately agreed on sum of £6,000 . If he not met the deadline, the price would have increased by at least £1,075.
Last October we were contacted by Mr and Mrs. S Bonnet , who moved into a garden apartment in Fallowfield in May 1999. We are asked if we could estimate the price would likely be to prolong the lease by ninety years. Comparable flats in Fallowfield with a long lease were in the region of £173,800. The average amount of ground rent was £65 invoiced yearly. The lease came to a finish in 2081. Having 55 years remaining we estimated the compensation to the landlord to extend the lease to be within £31,400 and £36,200 exclusive of costs.
In 2014 we were e-mailed by Dr M Young who, having moved into a one bedroom flat in Fallowfield in November 2010. We are asked if we could approximate the price could be for a ninety year extension to my lease. Comparable properties in Fallowfield with an extended lease were worth £235,200. The average amount of ground rent was £45 collected monthly. The lease concluded in 2092. Taking into account 66 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 not including legals.