Unfortunately that a Admaston residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Admaston property market.Once your lease nears 85ish years, you should start thinking about a lease extension. If the number of years remaining slips under 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most flat owners in Admaston will be able to extend under the legislation; however a lawyer will be able to clarify whether you are eligibility. In some situations you may not be entitled. There are also strict deadlines and procedures to follow once the process is initiated and you will need to be guided by your lawyer from beginning to end of the formalities.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barnsley Building Society | |
| Chelsea Building Society | |
| Coventry Building Society | |
| National Westminster Bank |
The conveyancing solicitors that we work with undertake 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.
Trailing unsuccessful correspondence with the landlord of her purpose-built flat in Admaston, Georgina commenced the lease extension process as the 80 year mark was fast approaching. The transaction was finalised in January 2015. The freeholder’s costs were kept to an absolute minimum.
Ms Sarah Moreau acquired a first floor flat in Admaston in October 2009. The dilemma was if we could estimate the price would be to extend the lease by an additional years. Comparable properties in Admaston with 100 year plus lease were valued around £200,800. The mid-range ground rent payable was £65 billed per annum. The lease ended in 2086. Given that there were 60 years left we approximated the compensation to the landlord for the lease extension to be within £20,900 and £24,200 plus fees.
In 2009 we were phoned by Dr F Stewart who, having bought a studio apartment in Admaston in March 2004. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year lease extension. Similar properties in Admaston with 100 year plus lease were worth £255,000. The mid-range ground rent payable was £50 billed yearly. The lease terminated on 20 March 2097. Taking into account 71 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus costs.