For those whose Almondsbury property is held on a long lease, our message is clear – if you do nothing, your property will eventually revert to your landlord, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease.
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Godiva Mortgages | |
| National Westminster Bank | |
| TSB | |
| The Mortgage Works |
The conveyancing solicitors that we work with undertake Almondsbury 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 lawyer we work with provide it.
Last Autumn Muhammad, started to get close to the eighty-year threshold with the lease on his leasehold apartment in Almondsbury. Having bought his flat two decades ago, the length of the lease was of no bearing. Luckily, he realised he would imminently be paying way over the odds for Extending the lease. Muhammad extended the lease at the eleventh hour last April. Muhammad and the freeholder subsequently agreed on a premium of £5,500 . If the lease had dipped lower than eighty years, the amount would have become more exhorbitant by at least £900.
In 2013 we were contacted by Mrs W Nguyen who, having owned a studio apartment in Almondsbury in June 2003. We are asked if we could approximate the premium would be to prolong the lease by a further 90 years. Identical premises in Almondsbury with a long lease were worth £260,000. The average ground rent payable was £50 invoiced quarterly. The lease elapsed on 16 September 2098. Having 72 years remaining we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of costs.
Last Winter we were called by Mr Muhammad Ramírez , who moved into a ground floor flat in Almondsbury in March 2005. We are asked if we could shed any light on how much (approximately) premium could be to prolong the lease by a further 90 years. Comparative homes in Almondsbury with an extended lease were valued around £256,600. The average amount of ground rent was £60 collected monthly. The lease elapsed on 2 February 2078. Given that there were 52 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £41,800 and £48,400 not including expenses.