There is no doubt about it a leasehold flat or house in Great Baddow is a wasting asset as a result of the shortening lease. If the lease has, over 125 years remaining then this decrease may be of little impact however 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 known as a marriage value. This could be significant. It is the main rational as to why you should extend the lease without delay. Many flat owners in Great Baddow will qualify for this right; however a conveyancing solicitor can advise if you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Coventry Building Society | |
| Leeds Building Society | |
| Nationwide Building Society | |
| Santander | |
| Virgin |
Regardless of whether you are a tenant or a landlord in Great Baddow,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Great Baddow valuers.
In recent months Nathaniel, came seriously close to the eighty-year mark with the lease on his one bedroom apartment in Great Baddow. In buying his home two decades ago, the length of the lease was of little relevance. Thankfully, he noticed he would soon be paying an escalated premium for a lease extension. Nathaniel was able to extend his lease just in the nick of time in August. Nathaniel and the landlord in the end settled on the final figure of £6,000 . If the lease had descended lower than eighty years, the price would have escalated by at least £850.
In 2013 we were e-mailed by Mr and Mrs. E Bennett who, having owned a recently refurbished apartment in Great Baddow in May 1997. We are asked if we could shed any light on how much (roughly) price would likely be for a ninety year extension to my lease. Comparable properties in Great Baddow with a long lease were worth £265,000. The average amount of ground rent was £55 collected yearly. The lease expired in 2100. Given that there were 74 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of fees.
In 2012 we were approached by Dr William Garcia who, having owned a ground floor flat in Great Baddow in March 2001. The dilemma was if we could shed any light on how much (approximately) premium would be for a ninety year extension to my lease. Similar residencies in Great Baddow with an extended lease were worth £166,400. The mid-range amount of ground rent was £60 invoiced monthly. The lease came to a finish on 4 April 2080. Considering the 54 years left we calculated the compensation to the freeholder to extend the lease to be within £32,300 and £37,400 plus legals.