As the the remaining lease term of a Childwall domestic lease lessens so does its value and therefore the value of your property. If the residual term has, in excess of 99 years to run then this decrease may be fractional that being said there will become a point in time when a lease has under than 80 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 rational as to why you should extend the lease without delay. Many flat owners in Childwall will meet the qualifying criteria; however a lawyer will be able to confirm if you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold premises in Childwall with in excess of one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Barnsley Building Society | |
| National Westminster Bank | |
| Nationwide Building Society | |
| TSB |
Irrespective of whether you are a tenant or a landlord in Childwall,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Childwall valuers.
Last Spring Lewis, started to get near to the 80-year threshold with the lease on his one bedroom apartment in Childwall. Having bought his home 19 years previously, the lease term was of little importance. Luckily, he recognised he needed to take steps soon on a lease extension. Lewis arranged for a lease extension just ahead of time in June. Lewis and the landlord eventually agreed on the final figure of £5,000 . If the lease had slipped to less than 80 years, the price would have gone up by at least £1,100.
Ms P Martin moved into a ground floor apartment in Childwall in November 2011. The dilemma was if we could shed any light on how much (roughly) premium could be to prolong the lease by 90 years. Comparative properties in Childwall with an extended lease were valued about £250,000. The average ground rent payable was £50 billed monthly. The lease ended in 2096. Considering the 70 years left we calculated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including costs.
In 2012 we were called by Dr H Ali who, having owned a studio flat in Childwall in June 2005. The question was if we could shed any light on how much (roughly) price would be to extend the lease by a further 90 years. Identical properties in Childwall with an extended lease were in the region of £246,800. The average amount of ground rent was £60 invoiced every twelve months. The lease ended in 2076. Considering the 50 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £44,700 and £51,600 plus professional charges.