Unfortunately that a Costessey residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Costessey property prices.Once your lease gets to 85ish years, you should start considering a lease extension. If the number of years remaining drops below eighty years, you will end up paying half of the property's 'marriage value' in addition to 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 The majority of leasehold owners in Costessey will be able to extend under the legislation; however a lawyer should be able to clarify if you are eligibility. In some situations you may not qualify. There are also strict timeframes and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer throughout the formalities.
Leasehold properties in Costessey with over one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 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. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Costessey,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Costessey valuers.
Austin owned a studio apartment in Costessey on the market with a lease of fraction over 72 years outstanding. Austin on an informal basis approached his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £200 yearly. Ordinarily, ground rent would not be payable on a lease extension were Austin to exercise his statutory right. Austin procured expert advice and was able to make an informed judgement and handle with the matter and readily saleable.
In 2009 we were contacted by Dr N Alexander who, having purchased a garden flat in Costessey in February 2008. The question was if we could approximate the premium could be to extend the lease by ninety years. Identical flats in Costessey with 100 year plus lease were in the region of £270,000. The average ground rent payable was £55 collected annually. The lease ended on 16 January 2100. Having 75 years outstanding we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus legals.
In 2012 we were approached by Mr and Mrs. W Hill who, having was assigned a lease of a one bedroom apartment in Costessey in February 2012. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year extension to my lease. Comparable homes in Costessey with an extended lease were valued about £173,800. The mid-range amount of ground rent was £60 billed yearly. The lease elapsed in 2080. Taking into account 55 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 not including professional charges.