It’s a harsh certainty that a Caldicot residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Caldicot property prices.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. If lease term slips below eighty years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most flat owners in Caldicot will be able to extend under the legislation; however a lawyer should be able to confirm whether you qualify for an extension. In some cases you may not qualify. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancer for the duration of the formalities.
It is generally considered that a property with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| Godiva Mortgages | |
| Leeds Building Society | |
| National Westminster Bank |
The conveyancing solicitors that we work with procure Caldicot 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 lawyer we work with provide it.
In recent months Logan, started to get near to the eighty-year mark with the lease on his basement apartment in Caldicot. In buying his flat 18 years previously, the length of the lease was of no bearing. Luckily, he noticed he needed to take steps soon on Extending the lease. Logan extended the lease at the eleventh hour last June. Logan and the landlord who owned the flat above ultimately settled on the final figure of £5,500 . If he had missed the deadline, the figure would have increased by a minimum £1,025.
Last Winter we were phoned by Mr and Mrs. M Morris , who acquired a studio flat in Caldicot in April 2001. We are asked if we could approximate the premium would be to prolong the lease by ninety years. Identical premises in Caldicot with 100 year plus lease were valued around £210,600. The average ground rent payable was £45 collected yearly. The lease terminated in 2088. Having 62 years left we approximated the premium to the freeholder to extend the lease to be within £18,100 and £20,800 not including professional charges.
Last Winter we were e-mailed by Dr Chelsea Reed , who was assigned a lease of a one bedroom apartment in Caldicot in June 2007. The dilemma was if we could shed any light on how much (approximately) price could be for a 90 year extension to my lease. Similar premises in Caldicot with a long lease were in the region of £265,000. The average ground rent payable was £50 collected yearly. The lease expired in 2099. Having 73 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of expenses.