For those whose Askam In Furness home is held on a long lease, our message is clear – if nothing is done, the property will eventually revert to your landlord, leaving you empty-handed. The shorter the lease the less it is worth and the more expensive it will be to obtain a lease extension.
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barclays plc | |
| Nationwide Building Society | |
| Skipton Building Society | |
| Royal Bank of Scotland |
Retaining our service gives you increased control over the value of your Askam In Furness leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Samuel, came seriously close to the 80-year threshold with the lease on his two bedroom apartment in Askam In Furness. In buying his home two decades ago, the unexpired term was of little bearing. Fortunately, it dawned on him that he would soon be paying way over the odds for Extending the lease. Samuel extended the lease just in the nick of time in April. Samuel and the freeholder ultimately settled on a premium of £5,000 . If he not met the deadline, the sum would have escalated by a minimum £1,075.
In 2011 we were contacted by Mr and Mrs. C White who, having owned a purpose-built flat in Askam In Furness in May 1998. We are asked if we could approximate the price could be for a ninety year extension to my lease. Comparative flats in Askam In Furness with an extended lease were worth £300,000. The average amount of ground rent was £50 billed every twelve months. The lease elapsed on 8 August 2102. Given that there were 76 years unexpired we approximated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 plus costs.
Mr and Mrs. A Brown bought a ground floor apartment in Askam In Furness in April 2001. We are asked if we could estimate the compensation to the landlord would be for a 90 year lease extension. Identical premises in Askam In Furness with a long lease were worth £257,800. The average ground rent payable was £65 invoiced per annum. The lease concluded in 2091. Given that there were 65 years left we estimated the compensation to the freeholder to extend the lease to be between £18,100 and £20,800 exclusive of professional charges.