The closer a domestic lease in Avonmouth gets to zero years unexpired, the the greater the reduction in the value of the property. If the lease has, beyond 99 years to run then this decrease may be of little impact however there will become a point in time when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should extend the lease sooner than later. The majority of flat owners in Avonmouth will meet the qualifying criteria; that being said a lawyer will be able to advise if you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally considered that a residential leasehold with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Coventry Building Society | |
| National Westminster Bank | |
| Skipton Building Society | |
| TSB |
Engaging our service gives you increased control over the value of your Avonmouth leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Lewis was the the leasehold proprietor of a studio apartment in Avonmouth being marketed with a lease of a few days over 72 years left. Lewis informally approached his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 annually. No ground rent would be due on a lease extension were Lewis to exercise his statutory right. Lewis procured expert advice and was able to make a more informed decision and handle with the matter and sell the flat.
Last Summer we were phoned by Dr E Lee , who acquired a ground floor flat in Avonmouth in March 1998. We are asked if we could approximate the premium could be to prolong the lease by an additional years. Comparable premises in Avonmouth with an extended lease were in the region of £285,000. The mid-range ground rent payable was £55 invoiced monthly. The lease concluded on 17 June 2105. Given that there were 79 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 not including expenses.
In 2011 we were contacted by Ms Morgan Cooper who, having purchased a recently refurbished flat in Avonmouth in May 1998. The dilemma was if we could estimate the compensation to the landlord could be to extend the lease by an additional years. Identical flats in Avonmouth with 100 year plus lease were in the region of £193,400. The average ground rent payable was £65 collected yearly. The lease finished in 2085. Given that there were 59 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £21,900 and £25,200 plus professional charges.