The value of Admaston leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase significantly once the unexpired lease term is less than eighty years
It is generally accepted that a residential leasehold with more than 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Skipton Building Society | |
| The Mortgage Works | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
The lawyers that we work with procure Admaston 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 conveyancing solicitor we work with provide it.
Last October Omar, started to get close to the 80-year threshold with the lease on his two bedroom flat in Admaston. In buying his home 19 years previously, the unexpired term was of minimal importance. Thankfully, it dawned on him that he would soon be paying way over the odds for a lease extension. Omar arranged for a lease extension just ahead of time in March. Omar and the landlord who owned the flat above ultimately settled on an amount of £5,500 . If he had missed the deadline, the sum would have gone up by a minimum £975.
Last Winter we were phoned by Mr and Mrs. H Cooper , who took over the lease of a one bedroom apartment in Admaston in February 1999. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Comparable homes in Admaston with 100 year plus lease were in the region of £285,000. The average ground rent payable was £55 billed monthly. The lease concluded in 2105. Having 79 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 not including professional charges.
Mr R Cook moved into a one bedroom apartment in Admaston in August 2006. We are asked if we could estimate the premium would be for a ninety year lease extension. Identical flats in Admaston with a long lease were valued about £193,400. The average ground rent payable was £65 billed quarterly. The lease ran out in 2085. Having 59 years remaining we estimated the premium to the freeholder to extend the lease to be within £21,900 and £25,200 plus legals.