Unfortunately that a Caldicot 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 deflation being disguised by increases in the Caldicot property prices.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 below 80 years - otherwise a higher premium will be payable. The majority of leasehold owners in Caldicot will be able to extend under the legislation; however a lawyer should be able to confirm if you are eligibility. 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 lawyer throughout the formalities.
It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barnsley Building Society | |
| Birmingham Midshires | |
| Nationwide Building Society | |
| TSB |
Regardless of whether you are a tenant or a freeholder in Caldicot,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Caldicot valuers.
In 2014 Benjamin, started to get near to the eighty-year threshold with the lease on his ground floor apartment in Caldicot. In buying his flat 18 years previously, the lease term was of no importance. Luckily, he noticed he needed to take action soon on Extending the lease. Benjamin was able to extend his lease at the eleventh hour last March. Benjamin and the freeholder via the managing agents subsequently agreed on the final figure of £5,000 . If the lease had gone lower than 80 years, the price would have increased by a minimum £1,125.
Last July we were contacted by Dr W Leroy , who moved into a purpose-built apartment in Caldicot in June 2000. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar premises in Caldicot with an extended lease were in the region of £246,800. The average amount of ground rent was £60 collected yearly. The lease terminated on 2 June 2076. Given that there were 50 years remaining we estimated the compensation to the landlord to extend the lease to be within £44,700 and £51,600 exclusive of legals.
In 2012 we were called by Mr B Nguyen who, having acquired a one bedroom flat in Caldicot in August 2009. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by 90 years. Comparable residencies in Caldicot with 100 year plus lease were worth £203,200. The average ground rent payable was £65 billed every twelve months. The lease elapsed on 15 June 2087. Taking into account 61 years as a residual term we approximated the premium to the landlord to extend the lease to be between £19,000 and £22,000 exclusive of legals.