Unfortunately that a Repton residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Repton property prices.Where your lease has approximately 90 years left, you need to start considering a lease extension. If lease term drops below eighty years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most flat owners in Repton will be able to extend under the legislation; however a conveyancer should be able to confirm if you are eligibility. In some situations you may not qualify. 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 throughout the process.
It is generally accepted that a property with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Coventry Building Society | |
| Godiva Mortgages | |
| Skipton Building Society | |
| Royal Bank of Scotland |
Engaging our service gives you better control over the value of your Repton leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Jasper was the the leasehold owner of a conversion flat in Repton on the market with a lease of a few days over fifty eight years unexpired. Jasper on an informal basis approached his landlord a well known London-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £150 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Jasper to invoke his statutory right. Jasper obtained expert legal guidance and was able to make an informed judgement and deal with the matter and sell the property.
Last Christmas we were contacted by Mr and Mrs. T Brown , who acquired a ground floor flat in Repton in February 1998. We are asked if we could approximate the price could be to prolong the lease by a further 90 years. Identical homes in Repton with an extended lease were valued about £166,400. The mid-range amount of ground rent was £60 collected yearly. The lease finished on 15 September 2080. Taking into account 54 years left we estimated the premium to the landlord to extend the lease to be between £32,300 and £37,400 not including legals.
In 2009 we were called by Mr J Cook who, having moved into a newly refurbished apartment in Repton in November 2010. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Identical properties in Repton with 100 year plus lease were valued around £227,800. The average amount of ground rent was £45 invoiced monthly. The lease lapsed in 2091. Having 65 years unexpired we approximated the premium to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of professional charges.