The closer a residential lease in Biddulph gets to zero years unexpired, the the greater the reduction in the value of the property. Where the residual term has, over 99 years to run then this decrease may be fractional that being said there will become a stage when a lease has fewer than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease sooner rather than later. The majority of flat owners in Biddulph will meet the qualifying criteria; that being said a conveyancing solicitor will be able to confirm if you qualify for a lease extension. In limited 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 accepted that a residential leasehold with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | |
| Santander | |
| Royal Bank of Scotland | |
| Virgin | |
| Yorkshire Building Society |
The conveyancers that we work with undertake Biddulph lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Stanley was the the leasehold owner of a high value apartment in Biddulph on the market with a lease of a little over sixty years remaining. Stanley informally approached his landlord a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £200 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Stanley to exercise his statutory right. Stanley obtained expert advice and secured satisfactory resolution without resorting to tribunal and readily saleable.
In 2009 we were phoned by Mr and Mrs. D Green who, having completed a garden flat in Biddulph in September 2003. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year extension to my lease. Similar residencies in Biddulph with a long lease were in the region of £256,600. The mid-range amount of ground rent was £60 billed yearly. The lease expiry date was in 2078. Given that there were 52 years outstanding we calculated the compensation to the landlord for the lease extension to be within £39,000 and £45,000 exclusive of fees.
Mrs Shannon Mercier moved into a one bedroom flat in Biddulph in May 2006. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by a further 90 years. Comparable premises in Biddulph with an extended lease were valued about £218,000. The average ground rent payable was £45 invoiced per annum. The lease finished in 2089. Having 63 years left we calculated the premium to the landlord for the lease extension to be between £17,100 and £19,800 not including legals.