Unfortunately that a Bulwell residential lease is a wasting 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 Bulwell property market.Where your lease has approximately 90 years left, you need to 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 slips under eighty years - otherwise a higher amount will be due. Most flat owners in Bulwell will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm whether you are eligibility. In some cases you may not be entitled. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the formalities.
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Barnsley Building Society | |
| Halifax | |
| Nationwide Building Society | |
| The Mortgage Works |
Regardless of whether you are a tenant or a landlord in Bulwell,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Bulwell valuers.
Hunter was the the leasehold proprietor of a high value apartment in Bulwell on the market with a lease of fraction over 61 years outstanding. Hunter on an informal basis spoke with his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 per annum. No ground rent would be payable on a lease extension were Hunter to exercise his statutory right. Hunter procured expert legal guidance and was able to make an informed judgement and deal with the matter and readily saleable.
In 2009 we were phoned by Mr N Khan who, having bought a newly refurbished flat in Bulwell in July 1998. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year lease extension. Identical properties in Bulwell with a long lease were worth £265,200. The mid-range ground rent payable was £65 invoiced per annum. The lease terminated on 6 March 2092. Taking into account 66 years remaining we approximated the premium to the freeholder for the lease extension to be within £15,200 and £17,600 plus costs.
Last Summer we were approach by Mrs K Torres , who completed a ground floor apartment in Bulwell in June 2006. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by an additional years. Comparative premises in Bulwell with 100 year plus lease were valued around £198,800. The average amount of ground rent was £55 invoiced every twelve months. The lease end date was in 2081. Taking into account 55 years unexpired we calculated the premium to the landlord to extend the lease to be between £33,300 and £38,400 not including expenses.