There is no doubt about it a leasehold property in Desford is a wasting asset as a result of the shortening lease. Where the lease has, over 100 years remaining then this decrease may be negligible that being said there will become a point in time when a lease has under than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary reason why you should extend the lease sooner rather than later. Many flat owners in Desford will qualify for this right; however a conveyancing solicitor can confirm if you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Chelsea Building Society | |
| National Westminster Bank | |
| Nationwide Building Society | |
| TSB |
The conveyancing solicitors that we work with undertake Desford 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.
Gabriel owned a high value flat in Desford being sold with a lease of just over 72 years remaining. Gabriel informally spoke with his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £100 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Gabriel to invoke his statutory right. Gabriel obtained expert advice and was able to make a more informed decision and deal with the matter and readily saleable.
In 2010 we were approached by Mr P Parker who, having was assigned a lease of a newly refurbished flat in Desford in October 2005. The question was if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year lease extension. Comparable flats in Desford with an extended lease were worth £218,000. The mid-range ground rent payable was £45 invoiced yearly. The lease ended on 5 June 2089. Taking into account 63 years left we approximated the premium to the landlord to extend the lease to be within £17,100 and £19,800 exclusive of expenses.
Ms Elizabeth Garcia bought a garden flat in Desford in November 2011. The dilemma was if we could approximate the premium would likely be for a ninety year lease extension. Comparable properties in Desford with a long lease were valued around £265,000. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease finished in 2100. Having 74 years left we calculated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including professional charges.