Unfortunately that a Bradley Stoke residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Bradley Stoke property prices.Once your lease nears 85ish years, you need to start thinking about 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 lower than eighty years - otherwise a higher premium will be due. The majority of leasehold owners in Bradley Stoke will be able to extend under the legislation; however a conveyancer should be able to clarify whether you qualify for an extension. In some cases you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancer for the duration of the process.
Leasehold properties in Bradley Stoke with more than 100 years left 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 circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Coventry Building Society | |
| Godiva Mortgages | |
| Royal Bank of Scotland | |
| Virgin |
The conveyancing solicitors that we work with undertake Bradley Stoke 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 conveyancer we work with provide it.
In the wake of 6 months of unsuccessful negotiations with the landlord of her studio apartment in Bradley Stoke, Naomi commenced the lease extension process as the 80 year threshold was fast coming. The transaction completed in February 2010. The landlord’s costs were kept to an absolute minimum.
In 2009 we were contacted by Dr E Patel who, having purchased a purpose-built flat in Bradley Stoke in January 2004. The dilemma was if we could shed any light on how much (approximately) price would be for a 90 year lease extension. Similar residencies in Bradley Stoke with an extended lease were valued around £267,600. The mid-range ground rent payable was £65 collected monthly. The lease lapsed in 2093. Given that there were 67 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £14,300 and £16,400 plus professional charges.
In 2011 we were phoned by Mr P Richardson who, having completed a newly refurbished flat in Bradley Stoke in January 2002. We are asked if we could estimate the price would be to prolong the lease by ninety years. Comparable residencies in Bradley Stoke with an extended lease were valued around £201,200. The mid-range ground rent payable was £55 billed annually. The lease came to a finish in 2082. Given that there were 56 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 plus expenses.