There is no doubt about it a leasehold property in Boroughbridge is a wasting asset as a result of the shortening lease. Where the residual term has, over 125 years to run then this decrease may be negligible however there will become a point in time when a lease has fewer than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should consider extending sooner than later. Many flat owners in Boroughbridge will meet the qualifying criteria; however a lawyer can confirm whether you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold premises in Boroughbridge with over one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Godiva Mortgages | |
| National Westminster Bank | |
| The Mortgage Works | |
| Royal Bank of Scotland |
Using our service will provide you enhanced control over the value of your Boroughbridge leasehold, as your property will be more valuable and marketable in relation to the 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.
Jasper was the the leasehold owner of a studio flat in Boroughbridge on the market with a lease of a little over fifty eight years left. Jasper on an informal basis approached his freeholder a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to an increased rent to £50 annually. Ordinarily, ground rent would not be due on a lease extension were Jasper to invoke his statutory right. Jasper obtained expert advice and was able to make a more informed decision and deal with the matter and readily saleable.
Dr J Morris completed a garden apartment in Boroughbridge in November 2011. We are asked if we could estimate the compensation to the landlord could be for a 90 year lease extension. Similar residencies in Boroughbridge with 100 year plus lease were valued around £210,000. The average amount of ground rent was £50 invoiced yearly. The lease lapsed in 2106. Considering the 80 years as a residual term we calculated the premium to the landlord for the lease extension to be within £8,600 and £9,800 plus expenses.
Last Spring we were approach by Ms A Davis , who acquired a garden apartment in Boroughbridge in May 1997. We are asked if we could shed any light on how much (roughly) premium would be for a 90 year lease extension. Identical residencies in Boroughbridge with 100 year plus lease were in the region of £275,000. The average ground rent payable was £45 billed every twelve months. The lease lapsed on 26 January 2095. Having 69 years remaining we estimated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of professional charges.