Unfortunately that a Greenfield residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Greenfield property prices.Once your lease nears 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips lower than eighty years - otherwise a higher premium will be payable. Most leasehold owners in Greenfield will be able to extend under the legislation; however a conveyancer should be able to confirm if you qualify for an extension. In some situations you may not be entitled. There are also strict deadlines and procedures to follow once the process is instigated and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
It is generally considered that a property with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Leeds Building Society | |
| Santander | |
| The Mortgage Works | |
| Virgin |
Using our service will provide you increased control over the value of your Greenfield leasehold, as your property will be more valuable and saleable in respect of lease length should you wish 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.
Last Autumn Thomas, started to get close to the 80-year threshold with the lease on his two bedroom apartment in Greenfield. Having purchased his property twenty years previously, the lease term was of no bearing. As luck would have it, he recognised he would soon be paying way over the odds for Extending the lease. Thomas was able to extend his lease just under the wire in June. Thomas and the freeholder ultimately agreed on sum of £5,000 . If the lease had gone below 80 years, the amount would have escalated by at least £900.
Last Autumn we were called by Mr Andrew Collins , who purchased a studio apartment in Greenfield in September 2007. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by a further 90 years. Similar homes in Greenfield with a long lease were valued about £246,800. The average ground rent payable was £60 invoiced quarterly. The lease ended in 2076. Given that there were 50 years remaining we estimated the premium to the freeholder to extend the lease to be within £44,700 and £51,600 plus fees.
Last Summer we were called by Mr Kyle Bennett , who completed a one bedroom flat in Greenfield in July 2007. The question was if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Comparable flats in Greenfield with 100 year plus lease were valued around £203,200. The average amount of ground rent was £65 invoiced every twelve months. The lease lapsed on 9 July 2087. Having 61 years as a residual term we estimated the premium to the landlord for the lease extension to be within £19,000 and £22,000 plus expenses.