Unfortunately that a Birch and Middleton residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Birch and Middleton property market.Once your lease gets to 85ish years, you should start thinking about a lease extension. If the number of years remaining drops under 80 years, you will end up paying 50% 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 flat owners in Birch and Middleton will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm whether you are eligibility. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is initiated and you will need to be guided by your lawyer from beginning to end of the process.
Leasehold residencies in Birch and Middleton with in excess of 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Coventry Building Society | |
| Skipton Building Society | |
| Virgin | |
| Yorkshire Building Society |
Retaining our service gives you better control over the value of your Birch and Middleton leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Tommy was the the leasehold proprietor of a studio apartment in Birch and Middleton being marketed with a lease of fraction over 59 years outstanding. Tommy on an informal basis spoke with his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 per annum. No ground rent would be payable on a lease extension were Tommy to invoke his statutory right. Tommy obtained expert legal guidance and secured satisfactory deal without resorting to tribunal and sell the property.
Mr H Jones moved into a studio flat in Birch and Middleton in August 1997. The question was if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Comparative premises in Birch and Middleton with 100 year plus lease were worth £285,000. The mid-range ground rent payable was £45 billed yearly. The lease ended in 2098. Taking into account 72 years unexpired we approximated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 not including professional charges.
Last month we were called by Mr and Mrs. D Morris , who moved into a basement apartment in Birch and Middleton in September 2009. We are asked if we could estimate the premium would likely be for a 90 year extension to my lease. Comparable premises in Birch and Middleton with a long lease were in the region of £233,200. The mid-range amount of ground rent was £60 invoiced per annum. The lease concluded in 2087. Given that there were 61 years outstanding we estimated the premium to the landlord for the lease extension to be between £22,800 and £26,400 plus professional charges.