The value of Birchgrove leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase materialy once the remaining term is less than 80 years
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Chelsea Building Society | |
| Coventry Building Society | |
| Nationwide Building Society | |
| Virgin |
Using our service will provide you better control over the value of your Birchgrove leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Matthew was the the leasehold proprietor of a conversion flat in Birchgrove being marketed with a lease of fraction over 59 years unexpired. Matthew on an informal basis approached his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £125 yearly. No ground rent would be due on a lease extension were Matthew to invoke his statutory right. Matthew procured expert legal guidance and secured satisfactory deal informally and sell the property.
Dr Harriet Jackson completed a garden apartment in Birchgrove in April 2009. The question was if we could estimate the premium would be to extend the lease by a further 90 years. Similar homes in Birchgrove with an extended lease were valued about £213,600. The average amount of ground rent was £60 collected per annum. The lease concluded on 21 September 2083. Given that there were 57 years outstanding we estimated the compensation to the landlord for the lease extension to be between £30,400 and £35,200 exclusive of expenses.
In 2014 we were phoned by Mr and Mrs. B Moreau who, having was assigned a lease of a first floor flat in Birchgrove in January 1999. We are asked if we could shed any light on how much (approximately) premium would likely be to extend the lease by ninety years. Comparable properties in Birchgrove with 100 year plus lease were worth £200,000. The mid-range ground rent payable was £50 billed every twelve months. The lease came to a finish in 2103. Having 77 years outstanding we estimated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 plus legals.