Unfortunately that a Bickley residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Bickley property market.Once your lease gets to 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips below eighty years - otherwise a higher premium will be payable. Most leasehold owners in Bickley will be able to extend under the legislation; however a lawyer will be able to clarify if you are eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancer throughout the formalities.
It is generally accepted that a residential leasehold with more than 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Leeds Building Society | |
| National Westminster Bank | |
| Royal Bank of Scotland | |
| Virgin |
Retaining our service will provide you enhanced control over the value of your Bickley leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last Christmas Matthew, started to get near to the eighty-year threshold with the lease on his basement apartment in Bickley. In buying his flat twenty years previously, the lease term was of no concern. Fortunately, he noticed he needed to take action soon on Extending the lease. Matthew was able to extend his lease at the eleventh hour in June. Matthew and the freeholder via the managing agents subsequently settled on a premium of £6,000 . If he not met the deadline, the figure would have increased by at least £1,025.
In 2011 we were e-mailed by Mrs Nicole Williams who, having completed a basement flat in Bickley in April 2004. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by 90 years. Identical properties in Bickley with an extended lease were worth £235,200. The average ground rent payable was £45 billed annually. The lease elapsed on 20 February 2092. Given that there were 66 years left we approximated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 not including expenses.
An example of a Lease Extension matter before the tribunal for a Bickley property is 1 Southlands Court Southlands Road in September 2013. The Leasehold Valuation Tribunal determined that the premium to be paid by the tenant on the grant of a new lease, in accordance with section 56 and Schedule 13 of the Leasehold Reform, Housing and Urban Development Act 1993 was £30,541 This case related to 1 flat. The remaining number of years on the lease was 50.57 years.