Deddington leases on domestic deteriorating in value. if your lease has approximately 90 years unexpired, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease dips below this level then you start paying an additional element called marriage value. Flat owners in Deddington will mostly qualify for a lease extension; however It would be wise to check with a conveyancer to check if you qualify. In certain circumstances you may not qualify. There are also strict timetables and formalities to follow once the process is initiated so it’s wise to be guided by a conveyancer during the process.
Leasehold properties in Deddington with over one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barnsley Building Society | |
| Halifax | |
| Nationwide Building Society | |
| Virgin |
The lawyers that we work with undertake Deddington 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 lawyer we work with provide it.
Henry owned a 2 bedroom flat in Deddington on the market with a lease of a little over fifty eight years left. Henry on an informal basis contacted his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 annually. No ground rent would be due on a lease extension were Henry to invoke his statutory right. Henry obtained expert advice and was able to make an informed judgement and deal with the matter and sell the flat.
Last Christmas we were e-mailed by Mr and Mrs. V Gunderson , who bought a studio apartment in Deddington in May 1997. The question was if we could approximate the compensation to the landlord would be for a 90 year lease extension. Similar residencies in Deddington with a long lease were valued around £260,000. The mid-range amount of ground rent was £50 collected monthly. The lease terminated in 2098. Given that there were 72 years remaining we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of costs.
Mr David Bennett moved into a studio apartment in Deddington in April 1996. We are asked if we could approximate the price would be for a ninety year extension to my lease. Comparative flats in Deddington with an extended lease were valued around £254,200. The mid-range ground rent payable was £60 invoiced yearly. The lease ran out in 2077. Taking into account 51 years unexpired we calculated the premium to the freeholder to extend the lease to be within £43,700 and £50,600 exclusive of professional charges.