Unfortunately that a Chipping Sodbury residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Chipping Sodbury property market.Once your lease nears 85ish years, you need to start thinking about 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 dips under eighty years - otherwise a higher premium will be due. The majority of flat owners in Chipping Sodbury will be able to extend under the legislation; however a lawyer should be able to confirm whether you qualify for an extension. In some situations 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 from beginning to end of the process.
Leasehold premises in Chipping Sodbury with in excess of one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Coventry Building Society | |
| National Westminster Bank | |
| Santander | |
| TSB |
The conveyancing solicitors that we work with handle Chipping Sodbury 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 conveyancing solicitor we work with provide it.
Cameron was the the leasehold owner of a conversion flat in Chipping Sodbury on the market with a lease of a little over 72 years unexpired. Cameron informally spoke with his freeholder being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to an increased rent to £50 per annum. Ordinarily, ground rent would not be payable on a lease extension were Cameron to exercise his statutory right. Cameron obtained expert advice and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
Last month we were contacted by Ms Jade Patel , who took over the lease of a newly refurbished apartment in Chipping Sodbury in October 2010. The dilemma was if we could estimate the premium would be for a 90 year lease extension. Comparative homes in Chipping Sodbury with 100 year plus lease were in the region of £255,000. The average ground rent payable was £50 invoiced per annum. The lease came to a finish in 2096. Taking into account 70 years unexpired we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of expenses.
Last Summer we were called by Mr and Mrs. H Norbert , who took over the lease of a one bedroom apartment in Chipping Sodbury in February 1998. We are asked if we could shed any light on how much (roughly) premium would be to extend the lease by an additional years. Comparable premises in Chipping Sodbury with 100 year plus lease were in the region of £246,800. The average amount of ground rent was £60 billed per annum. The lease ran out in 2076. Having 50 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £44,700 and £51,600 not including legals.