There is no doubt about it a leasehold flat or house in Bury St Edmunds is a wasting asset as a result of the shortening lease. Where the lease has, in excess of 99 years remaining then this decrease may be fractional nevertheless there will become a point in time when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease sooner as opposed to later. Most flat owners in Bury St Edmunds will meet the qualifying criteria; however a lawyer can advise whether you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barnsley Building Society | |
| Godiva Mortgages | |
| Santander | |
| Yorkshire Building Society |
Using our service will provide you better control over the value of your Bury St Edmunds 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 have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Trailing lengthy discussions with the landlord of her ground floor flat in Bury St Edmunds, Elizabeth started the lease extension process as the 80 year mark was quickly advancing. The lease extension completed in April 2010. The landlord’s costs were kept to an absolute minimum.
In 2012 we were called by Dr F Leroy who, having was assigned a lease of a first floor flat in Bury St Edmunds in April 2010. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Identical flats in Bury St Edmunds with 100 year plus lease were in the region of £255,000. The average amount of ground rent was £50 billed per annum. The lease termination date was on 25 April 2096. Having 70 years left we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of professional charges.
Last month we were phoned by Mr and Mrs. L González , who completed a one bedroom flat in Bury St Edmunds in March 2002. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Comparable flats in Bury St Edmunds with an extended lease were worth £246,800. The average ground rent payable was £60 collected annually. The lease elapsed on 17 February 2076. Considering the 50 years as a residual term we approximated the premium to the landlord to extend the lease to be between £44,700 and £51,600 plus legals.