For anyone whose Brown Edge property is held on a long lease, our message is clear – if you ignore the situation, the property will ultimately revert to the freeholder, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease.
It is conventional wisdom that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barnsley Building Society | |
| Godiva Mortgages | |
| Halifax | |
| Nationwide Building Society |
Retaining our service gives you enhanced control over the value of your Brown Edge leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
William was the the leasehold proprietor of a 2 bedroom flat in Brown Edge being marketed with a lease of a few days over 59 years unexpired. William on an informal basis contacted his landlord being a well known local-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 a rise in the rent to £125 yearly. No ground rent would be due on a lease extension were William to exercise his statutory right. William procured expert legal guidance and secured an acceptable resolution informally and ending up with a market value flat.
In 2009 we were phoned by Dr G Stewart who, having bought a ground floor flat in Brown Edge in July 2002. We are asked if we could estimate the compensation to the landlord could be for a ninety year lease extension. Comparable properties in Brown Edge with 100 year plus lease were in the region of £265,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease finished in 2099. Taking into account 73 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of fees.
Last Spring we were approach by Mr and Mrs. O Petit , who owned a basement apartment in Brown Edge in July 1996. We are asked if we could approximate the price would be for a 90 year extension to my lease. Similar residencies in Brown Edge with a long lease were worth £264,000. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease came to a finish on 22 March 2079. Given that there were 53 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £37,100 and £42,800 exclusive of fees.