Unfortunately that a Danescourt residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Danescourt property market.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. If lease term slips below 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. The marriage fee is the amount of additional value that a lease extension will add the property Most leasehold owners in Danescourt will be able to extend under the legislation; however a conveyancer should be able to clarify if you qualify for an extension. In some cases you may not qualify. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer for the duration of the process.
It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Chelsea Building Society | |
| Nationwide Building Society | |
| Skipton Building Society | |
| TSB |
Retaining our service gives you increased control over the value of your Danescourt leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of unsuccessful correspondence with the landlord of her two bedroom flat in Danescourt, Tia commenced the lease extension process as the eighty year deadline was quickly advancing. The lease extension was concluded in June 2010. The landlord’s charges were kept to an absolute minimum.
Last Winter we were approach by Mr Felix Torres , who bought a ground floor flat in Danescourt in March 2009. We are asked if we could approximate the price could be to extend the lease by a further 90 years. Comparable flats in Danescourt with an extended lease were in the region of £260,200. The average ground rent payable was £65 invoiced per annum. The lease termination date was on 11 January 2092. Given that there were 66 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £16,200 and £18,600 not including legals.
Last month we were called by Dr G Davis , who took over the lease of a garden flat in Danescourt in January 2010. We are asked if we could estimate the premium would be for a ninety year lease extension. Comparable flats in Danescourt with a long lease were worth £198,800. The mid-range amount of ground rent was £55 billed annually. The lease end date was in 2081. Having 55 years left we calculated the premium to the freeholder for the lease extension to be within £33,300 and £38,400 exclusive of fees.