It’s an underpublicised truth that a Clarbeston Road residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Clarbeston Road property prices.Where your lease has approximately ninety years left, you need to start considering a lease extension. If the number of years remaining falls below 80 years, you will end up paying 50% 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 extra value that a lease extension will add the property Most leasehold owners in Clarbeston Road will be able to extend under the legislation; however a lawyer will be able to confirm whether you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancing solicitor throughout the formalities.
It is generally accepted that a property with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Birmingham Midshires | |
| Coventry Building Society | |
| Halifax | |
| Skipton Building Society |
Irrespective of whether you are a tenant or a landlord in Clarbeston Road,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 Clarbeston Road valuers.
Daniel owned a studio apartment in Clarbeston Road being sold with a lease of a few days over fifty eight years left. Daniel on an informal basis spoke with his landlord a well known London-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Daniel to exercise his statutory right. Daniel procured expert advice and secured satisfactory resolution without going to tribunal and readily saleable.
Mr and Mrs. N Lefèvre completed a one bedroom apartment in Clarbeston Road in January 2010. We are asked if we could estimate the price would be to prolong the lease by 90 years. Similar homes in Clarbeston Road with a long lease were worth £176,200. The mid-range amount of ground rent was £65 collected quarterly. The lease lapsed on 25 October 2082. Considering the 56 years unexpired we estimated the compensation to the landlord for the lease extension to be between £29,500 and £34,000 not including costs.
Last Autumn we were e-mailed by Ms Ashleigh Girard , who bought a first floor apartment in Clarbeston Road in May 1996. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by ninety years. Comparative residencies in Clarbeston Road with a long lease were worth £237,600. The average ground rent payable was £45 billed monthly. The lease elapsed on 17 July 2093. Having 67 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £11,400 and £13,200 plus legals.