It’s a harsh truth that a Ardwick residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Ardwick property market.Where your lease has approximately 90 years left, you should start considering a lease extension. If lease term dips below eighty years, you will then be required to pay half 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 Ardwick will be able to extend under the legislation; however a conveyancer should be able to clarify whether you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancer throughout the process.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth approximately the equivalent 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 decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barclays plc | |
| Halifax | |
| National Westminster Bank | |
| Santander |
Regardless of whether you are a tenant or a freeholder in Ardwick,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Ardwick valuers.
Half a year ago Arthur, started to get near to the eighty-year mark with the lease on his two bedroom apartment in Ardwick. Having bought his property two decades ago, the unexpired term was of minimal concern. Fortunately, he became aware that he needed to take steps soon on Extending the lease. Arthur arranged for a lease extension just under the wire last September. Arthur and the landlord who owned the flat above subsequently settled on sum of £5,000 . If he had missed the deadline, the premium would have increased by at least £850.
Last Winter we were e-mailed by Mr and Mrs. H Adams , who was assigned a lease of a garden flat in Ardwick in June 1996. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Similar residencies in Ardwick with 100 year plus lease were valued about £193,400. The average ground rent payable was £65 billed quarterly. The lease ran out in 2085. Given that there were 59 years unexpired we estimated the compensation to the landlord to extend the lease to be between £21,900 and £25,200 not including professional charges.
Mrs C Robinson acquired a recently refurbished apartment in Ardwick in March 2005. We are asked if we could approximate the price could be for a 90 year lease extension. Identical premises in Ardwick with an extended lease were valued around £250,000. The average amount of ground rent was £50 billed yearly. The lease ran out in 2096. Having 70 years remaining we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of professional charges.