The value of Leven leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate significantly once the remaining term is less than eighty years
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth roughly the equivalent 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 |
|---|---|
| Bank of Scotland | |
| Chelsea Building Society | |
| Nationwide Building Society | |
| Skipton Building Society | |
| The Mortgage Works |
The conveyancers that we work with procure Leven lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Last year Lewis, came critically near to the eighty-year threshold with the lease on his basement flat in Leven. Having bought his flat two decades ago, the unexpired term was of no concern. Luckily, he noticed he needed to take action soon on a lease extension. Lewis was able to extend his lease just under the wire in March. Lewis and the freeholder via the managing agents subsequently settled on sum of £5,000 . If he not met the deadline, the figure would have gone up by a minimum £1,125.
Dr M Moreau purchased a studio apartment in Leven in March 2004. We are asked if we could approximate the price could be for a ninety year lease extension. Comparative flats in Leven with a long lease were valued around £256,600. The average amount of ground rent was £60 collected quarterly. The lease elapsed in 2078. Given that there were 52 years left we calculated the premium to the landlord to extend the lease to be within £41,800 and £48,400 not including professional charges.
In 2009 we were approached by Mr C Alexander who, having bought a one bedroom flat in Leven in September 1997. We are asked if we could estimate the price would likely be for a ninety year lease extension. Identical premises in Leven with an extended lease were worth £218,000. The average ground rent payable was £45 invoiced annually. The lease ran out in 2089. Taking into account 63 years remaining we estimated the compensation to the landlord for the lease extension to be between £17,100 and £19,800 exclusive of fees.