Unfortunately that a Codsall residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Codsall property market.Where your lease has approximately 90 years left, you should start considering a lease extension. If the number of years remaining falls under 80 years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most flat owners in Codsall will be able to extend under the legislation; however a lawyer will be able to confirm whether you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer for the duration of 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 further 90 years added to any lease with more than 35 years unexpired, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with procure Codsall 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.
Two years ago Jude, came seriously close to the 80-year mark with the lease on his studio apartment in Codsall. Having bought his home twenty years previously, the length of the lease was of little relevance. Luckily, he became aware that he needed to take action soon on a lease extension. Jude extended the lease just under the wire in August. Jude and the landlord who owned the flat above eventually settled on the final figure of £5,000 . If he not met the deadline, the premium would have gone up by a minimum £950.
Dr Freddie Richardson owned a purpose-built flat in Codsall in September 2005. The dilemma was if we could shed any light on how much (approximately) price would likely be to extend the lease by an additional years. Comparative residencies in Codsall with 100 year plus lease were valued around £255,000. The mid-range ground rent payable was £50 collected every twelve months. The lease finished in 2095. Taking into account 70 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £10,500 and £12,000 plus legals.
Last February we were approach by Mr and Mrs. B Davis , who took over the lease of a ground floor flat in Codsall in March 2011. We are asked if we could approximate the premium would likely be for a ninety year lease extension. Identical properties in Codsall with a long lease were valued around £246,800. The average amount of ground rent was £60 billed every twelve months. The lease ran out on 23 July 2075. Considering the 50 years left we estimated the compensation to the freeholder for the lease extension to be within £44,700 and £51,600 plus professional charges.