Unfortunately that a Chipping Sodbury residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Chipping Sodbury property prices.Where your lease has approximately ninety years left, you need to start considering a lease extension. If the number of years remaining dips below 80 years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most flat owners in Chipping Sodbury will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm if you qualify for an extension. In some situations you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancer for the duration of the process.
Leasehold residencies in Chipping Sodbury with over 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| Coventry Building Society | |
| The Mortgage Works | |
| Royal Bank of Scotland |
Using our service will provide you better control over the value of your Chipping Sodbury leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of lengthy correspondence with the freeholder of her two bedroom apartment in Chipping Sodbury, Courtney started the lease extension process as the 80 year deadline was fast nearing. The legal work was finalised in July 2010. The freeholder’s costs were restricted to slightly above 600 pounds.
Last Christmas we were approach by Mrs S Campbell , who moved into a studio flat in Chipping Sodbury in September 2002. We are asked if we could shed any light on how much (roughly) premium would be to extend the lease by an additional years. Comparative homes in Chipping Sodbury with a long lease were valued around £270,000. The average ground rent payable was £55 billed yearly. The lease ended on 15 February 2100. Given that there were 74 years as a residual term we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of legals.
In 2011 we were e-mailed by Mr Hunter Martinez who, having acquired a basement flat in Chipping Sodbury in January 2004. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year lease extension. Comparative properties in Chipping Sodbury with a long lease were valued around £166,400. The mid-range ground rent payable was £60 billed monthly. The lease expired in 2080. Given that there were 54 years as a residual term we approximated the premium to the landlord to extend the lease to be within £32,300 and £37,400 not including professional charges.