It’s an underpublicised certainty that a Birchington 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 first few years due to the loss of value being disguised by increases in the Birchington property prices.Once your lease gets to 85ish years, you should 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 falls under 80 years - otherwise a higher amount will be payable. The majority of flat owners in Birchington will be able to extend under the legislation; however a lawyer will be able to clarify if you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancer for the duration of the process.
It is conventional wisdom that a property with over 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Skipton Building Society | |
| TSB | |
| The Mortgage Works | |
| Yorkshire Building Society |
Lease extensions in Birchington can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Birchington lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Henry, came precariously close to the eighty-year mark with the lease on his one bedroom flat in Birchington. In buying his property 19 years ago, the lease term was of little interest. by good luck, he noticed he needed to take action soon on a lease extension. Henry was able to extend his lease just under the wire last September. Henry and the freeholder ultimately agreed on a premium of £5,000 . If he not met the deadline, the premium would have become more exhorbitant by at least £975.
Last Summer we were e-mailed by Dr Jonathan Harris , who purchased a studio flat in Birchington in April 2001. We are asked if we could estimate the price could be for a 90 year extension to my lease. Identical flats in Birchington with a long lease were worth £210,000. The average amount of ground rent was £50 invoiced per annum. The lease ran out on 1 October 2106. Given that there were 80 years outstanding we approximated the premium to the landlord for the lease extension to be within £8,600 and £9,800 plus professional charges.
Last Winter we were contacted by Ms M Lefèvre , who bought a one bedroom apartment in Birchington in March 1996. The dilemma was if we could shed any light on how much (roughly) price would be for a 90 year lease extension. Comparable residencies in Birchington with an extended lease were worth £275,000. The average ground rent payable was £45 invoiced every twelve months. The lease expired in 2095. Given that there were 69 years remaining we estimated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 plus fees.