It’s an underpublicised truth that a Church Village 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 first few years due to the reduction being disguised by increases in the Church Village property prices.Once your lease nears 85ish years, you need to start considering a lease extension. If the number of years remaining dips under 80 years, you will then be required to pay 50% of the property's 'marriage value' in addition to 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 leasehold owners in Church Village will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you are eligibility. In some situations you may not be entitled. There are also strict deadlines and procedures to follow once the process is initiated and you will need to be guided by your conveyancing solicitor throughout the formalities.
Leasehold premises in Church Village with in excess of 100 years left 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 home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Halifax | |
| National Westminster Bank | |
| Nationwide Building Society | |
| Royal Bank of Scotland |
Engaging our service will provide you enhanced control over the value of your Church Village leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to unsuccessful correspondence with the landlord of her garden flat in Church Village, Rosie initiated the lease extension process as the eighty year threshold was fast nearing. The lease extension completed in November 2007. The freeholder’s costs were kept to an absolute minimum.
Last Winter we were contacted by Mrs Jasmine Mason , who owned a first floor flat in Church Village in October 2000. We are asked if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Comparable premises in Church Village with an extended lease were in the region of £260,000. The mid-range amount of ground rent was £50 billed annually. The lease finished in 2097. Given that there were 71 years remaining we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including costs.
Last Autumn we were e-mailed by Mrs M Taylor , who acquired a one bedroom flat in Church Village in April 2004. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year lease extension. Comparable premises in Church Village with a long lease were valued about £254,200. The average ground rent payable was £60 billed annually. The lease terminated in 2077. Considering the 51 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £43,700 and £50,600 plus costs.