Unfortunately that a Slade Green residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Slade Green property prices.Once your lease gets to 85ish years, you need to start thinking about a lease extension. If lease term slips below eighty years, you will end up paying half of the property's 'marriage value' on top of 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 The majority of flat owners in Slade Green will be able to extend under the legislation; however a lawyer should be able to clarify whether you are eligibility. In some cases you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer for the duration of the formalities.
Leasehold properties in Slade Green with over 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Regardless of whether you are a tenant or a landlord in Slade Green,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Slade Green valuers.
In recent months Nathan, came seriously close to the eighty-year mark with the lease on his one bedroom flat in Slade Green. In buying his property 19 years ago, the length of the lease was of no importance. Luckily, he realised he needed to take steps soon on Extending the lease. Nathan was able to extend his lease just in the nick of time last May. Nathan and the freeholder via the management company in the end agreed on sum of £5,000 . If the lease had slipped lower than 80 years, the premium would have escalated by at least £950.
Dr Jade Martinez bought a ground floor apartment in Slade Green in May 1997. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by an additional years. Identical flats in Slade Green with a long lease were valued around £208,600. The average amount of ground rent was £60 invoiced every twelve months. The lease came to a finish in 2082. Having 57 years remaining we calculated the premium to the freeholder for the lease extension to be between £30,400 and £35,200 plus costs.
An example of a Lease Extension decision for a Slade Green flat is Various @ Colombus Square in January 2012. the Tribunal calculated the premiums to be paid for new leases for each of the flats in Mariners Walk to be £3822 and the premium to be paid for the new lease of 2 Knights Court to be £4439. This case was in relation to 13 flats. The number of years remaining on the existing lease(s) was 76 years.