It’s a harsh truth that a Bredbury residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Bredbury property market.Where your lease has approximately 90 years left, you need to start considering a lease extension. If lease term falls under 80 years, you will then be required to pay half of the property's 'marriage value' in addition to 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 The majority of leasehold owners in Bredbury will be able to extend under the legislation; however a conveyancer will be able to confirm if you are eligibility. In some situations you may not qualify. There are also strict timetables 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 residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barclays plc | |
| Coventry Building Society | |
| Santander | |
| Virgin |
Using our service will provide you better control over the value of your Bredbury leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Jake, came seriously close to the eighty-year mark with the lease on his garden flat in Bredbury. Having bought his property two decades ago, the lease term was of no significance. Fortunately, he became aware that he would imminently be paying an escalated premium for a lease extension. Jake arranged for a lease extension just in the nick of time in March. Jake and the freeholder in the end agreed on an amount of £5,500 . If he had missed the deadline, the price would have become more costly by at least £1,125.
Mr B Bernard acquired a purpose-built apartment in Bredbury in July 2005. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by 90 years. Identical homes in Bredbury with an extended lease were worth £275,000. The mid-range amount of ground rent was £65 collected monthly. The lease finished in 2094. Given that there were 68 years outstanding we calculated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 not including fees.
In 2011 we were contacted by Mr and Mrs. V Cook who, having owned a newly refurbished flat in Bredbury in May 2006. We are asked if we could estimate the price would likely be for a 90 year lease extension. Similar flats in Bredbury with a long lease were in the region of £213,600. The mid-range ground rent payable was £60 invoiced per annum. The lease came to a finish on 11 October 2083. Considering the 57 years unexpired we estimated the compensation to the landlord to extend the lease to be between £30,400 and £35,200 exclusive of fees.