Balby leases on residential properties are gradually losing value. Where your lease has approximately 90 years left, you should start considering the need for a lease extension. An important point to note is that it is desirable for your lease extension to be in place before the term of the current lease dips lower than 80 years - otherwise a higher premium will be due. Flat owners in Balby will usually be legally entitled to a lease extension; however a solicitor will confirm if you qualify. In some situations you may not be entitled. There are also strict timetables and formalities to comply with once the process is triggered so it’s wise to be guided by a lawyer during the process.
Leasehold residencies in Balby with over one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Skipton Building Society | |
| The Mortgage Works | |
| Royal Bank of Scotland | |
| Virgin | |
| Yorkshire Building Society |
Lease extensions in Balby can be a difficult process. We recommend you procure guidance from a lawyer and valuer with experience in lease extensions.
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 Balby lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Michael was the the leasehold proprietor of a 2 bedroom apartment in Balby being marketed with a lease of fraction over 59 years remaining. Michael on an informal basis spoke with his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Michael to exercise his statutory right. Michael procured expert legal guidance and was able to make a more informed decision and deal with the matter and sell the property.
In 2009 we were phoned by Mr and Mrs. Y Thompson who, having completed a basement flat in Balby in March 2001. The dilemma was if we could estimate the premium would be for a 90 year extension to my lease. Similar flats in Balby with a long lease were in the region of £166,400. The average amount of ground rent was £60 billed every twelve months. The lease concluded in 2080. Having 54 years outstanding we estimated the compensation to the landlord to extend the lease to be between £32,300 and £37,400 exclusive of costs.
Mr Harry Bennett acquired a one bedroom flat in Balby in August 2000. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Comparative flats in Balby with 100 year plus lease were worth £227,800. The average amount of ground rent was £45 invoiced annually. The lease lapsed in 2091. Considering the 65 years remaining we estimated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of professional charges.