Arnold leases on residential properties are gradually losing value. if your lease has about ninety years unexpired, you should start considering the need for a lease extension. If lease term dips under 80 years, you will then have to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Arnold will mostly qualify for a lease extension; however a solicitor should be able check if you qualify. In certain circumstances you may not qualify. There are also strict deadlines and steps to follow once the process is triggered so it’s sensible to be guided by a conveyancer during the process.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| National Westminster Bank | |
| Santander | |
| TSB | |
| The Mortgage Works |
Lease extensions in Arnold can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and valuer 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 Arnold lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Riley owned a 2 bedroom apartment in Arnold on the market with a lease of just over 72 years remaining. Riley informally contacted his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £150 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Riley to invoke his statutory right. Riley procured expert advice and secured satisfactory deal without resorting to tribunal and sell the flat.
In 2010 we were called by Dr Amelia Morris who, having owned a one bedroom flat in Arnold in June 1998. We are asked if we could approximate the premium would likely be for a 90 year lease extension. Similar residencies in Arnold with 100 year plus lease were worth £300,000. The average amount of ground rent was £50 invoiced annually. The lease elapsed in 2102. Taking into account 76 years unexpired we approximated the premium to the landlord for the lease extension to be within £8,600 and £9,800 not including expenses.
Mr R Johnson completed a ground floor apartment in Arnold in May 2003. The question was if we could estimate the compensation to the landlord would be to extend the lease by an additional years. Similar premises in Arnold with a long lease were valued about £257,800. The average amount of ground rent was £65 billed quarterly. The lease came to a finish in 2091. Given that there were 65 years outstanding we approximated the premium to the landlord to extend the lease to be between £18,100 and £20,800 plus professional charges.