Cardigan residential property held on a long lease is a depreciating asset as the leaseholder merely owns the property for a period of years.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Birmingham Midshires | |
| Halifax | |
| Leeds Building Society | |
| The Mortgage Works |
Regardless of whether you are a tenant or a freeholder in Cardigan,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Cardigan valuers.
Following lengthy discussions with the landlord of her purpose-built apartment in Cardigan, Ella started the lease extension process as the eighty year deadline was quickly coming. The lease extension completed in March 2008. The freeholder’s fees were restricted to less than 600 pounds.
Last Autumn we were contacted by Mr W Richardson , who bought a purpose-built flat in Cardigan in June 1996. We are asked if we could estimate the price could be for a 90 year extension to my lease. Identical premises in Cardigan with an extended lease were valued about £242,600. The average amount of ground rent was £45 billed per annum. The lease came to a finish on 24 November 2093. Taking into account 67 years unexpired we calculated the compensation to the landlord to extend the lease to be between £11,400 and £13,200 exclusive of professional charges.
In 2012 we were phoned by Dr Isobel Ramírez who, having completed a one bedroom apartment in Cardigan in April 2010. We are asked if we could shed any light on how much (approximately) premium would be for a 90 year lease extension. Similar properties in Cardigan with an extended lease were in the region of £280,000. The average ground rent payable was £55 invoiced quarterly. The lease ended on 8 October 2104. Considering the 78 years unexpired we calculated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 not including fees.