With a domestic leasehold premises in Admaston, you are actually buying an entitlement to live in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive particularly when there are less than eighty years left. Residents in Admaston with a lease nearing 81 years remaining should seriously consider extending it sooner rather than later. When the lease term has under eighty years left, under the current Act the landlord is entitled to calculate and demand a greater amount, based on a technical multiplication, known as “marriage value” which is payable.
It is generally considered 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 any lease with more than 30 years unexpired, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 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. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
Lease extensions in Admaston can be a difficult process. We recommend you procure guidance from a lawyer and surveyor well versed in the legislation and lease extension process.
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 in-depth market knowledge procuring Admaston lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Alfie, came seriously near to the eighty-year mark with the lease on his first floor flat in Admaston. In buying his flat 18 years ago, the lease term was of little interest. Luckily, he realised he needed to take steps soon on a lease extension. Alfie was able to extend his lease just under the wire last August. Alfie and the landlord subsequently settled on the final figure of £5,000 . If he not met the deadline, the amount would have increased by a minimum £925.
Dr Thomas Wright moved into a purpose-built apartment in Admaston in February 2000. The dilemma was if we could estimate the price could be for a 90 year lease extension. Identical flats in Admaston with an extended lease were valued around £186,000. The mid-range amount of ground rent was £65 invoiced per annum. The lease finished in 2083. Considering the 58 years left we estimated the compensation to the landlord to extend the lease to be within £24,700 and £28,600 exclusive of legals.
Dr O Petit bought a garden apartment in Admaston in June 2011. We are asked if we could approximate the price would be to extend the lease by ninety years. Identical properties in Admaston with 100 year plus lease were in the region of £250,000. The average amount of ground rent was £50 collected annually. The lease elapsed on 18 March 2094. Considering the 69 years unexpired we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of costs.