Unfortunately that a Greenfield residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Greenfield property prices.Once your lease gets to 85ish years, you need to 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 below 80 years - otherwise a higher premium will be payable. The majority of leasehold owners in Greenfield will be able to extend under the legislation; however a lawyer should be able to clarify if you are eligibility. In some situations you may not be entitled. There are also strict timetables 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 formalities.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Halifax | |
| Leeds Building Society | |
| TSB | |
| Yorkshire Building Society |
Lease extensions in Greenfield can be a difficult process. We recommend you procure guidance from a conveyancer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Greenfield lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 6 months of lengthy correspondence with the freeholder of her garden flat in Greenfield, Freya initiated the lease extension process as the eighty year mark was swiftly nearing. The lease extension completed in April 2005. The freeholder’s costs were restricted to below 500 GBP.
Last Spring we were approach by Mr and Mrs. I Bonnet , who moved into a basement apartment in Greenfield in June 1996. The dilemma was if we could shed any light on how much (approximately) price would likely be for a ninety year lease extension. Similar premises in Greenfield with an extended lease were valued around £250,000. The mid-range ground rent payable was £50 invoiced monthly. The lease ran out in 2095. Given that there were 69 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including costs.
Last November we were e-mailed by Dr Rhiannon Gómez , who acquired a first floor apartment in Greenfield in September 2009. We are asked if we could estimate the price would likely be to prolong the lease by a further 90 years. Similar flats in Greenfield with a long lease were in the region of £285,000. The mid-range ground rent payable was £55 billed per annum. The lease elapsed on 22 August 2106. Given that there were 80 years left we estimated the premium to the landlord for the lease extension to be within £12,400 and £14,200 plus expenses.