Unfortunately that a Bilston and Bradley residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Bilston and Bradley property market.Once your lease nears 85ish years, you need to start thinking about a lease extension. If lease term dips under 80 years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most leasehold owners in Bilston and Bradley will be able to extend under the legislation; however a lawyer will be able to confirm if you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to follow once the process is instigated and you will need to be guided by your lawyer throughout the process.
Leasehold premises in Bilston and Bradley with more than 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| National Westminster Bank | |
| Nationwide Building Society | |
| Skipton Building Society | |
| TSB |
The conveyancers that we work with procure Bilston and Bradley 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.
After unsuccessful correspondence with the freeholder of her two bedroom flat in Bilston and Bradley, Natalie started the lease extension process just as the lease was approaching the crucial 80-year deadline. The legal work completed in June 2014. The landlord’s charges were negotiated to under 600 GBP.
Mr and Mrs. I Cook took over the lease of a one bedroom flat in Bilston and Bradley in June 2008. We are asked if we could estimate the premium would likely be for a 90 year extension to my lease. Identical homes in Bilston and Bradley with 100 year plus lease were in the region of £280,000. The mid-range ground rent payable was £45 billed quarterly. The lease termination date was in 2095. Given that there were 69 years outstanding we approximated the premium to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of costs.
Last Spring we were contacted by Mr and Mrs. J Young , who was assigned a lease of a ground floor flat in Bilston and Bradley in January 2007. We are asked if we could estimate the price would likely be for a ninety year lease extension. Comparative premises in Bilston and Bradley with an extended lease were valued about £216,000. The average amount of ground rent was £60 collected yearly. The lease lapsed on 24 November 2084. Having 58 years remaining we calculated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 plus legals.