Downham Market leases on residential deteriorating in value. Where your lease has in the region of ninety years left, you should start considering the need for a lease extension. If lease term dips under 80 years, you will then have to pay half of the property's 'marriage value' in addition to the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Downham Market will usually be legally entitled to a lease extension; however a solicitor should be able check if you qualify. In certain circumstances you may not qualify. There are prescribed timetables and procedures to follow once the process has started so it’s prudent to be guided by a conveyancing solicitor during the process.
Leasehold properties in Downham Market with more than one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Chelsea Building Society | |
| Halifax | |
| National Westminster Bank | |
| Nationwide Building Society |
Irrespective of whether you are a tenant or a freeholder in Downham Market,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Downham Market valuers.
Half a year ago Alex, came precariously close to the 80-year mark with the lease on his first floor apartment in Downham Market. In buying his home two decades ago, the unexpired term was of no interest. by good luck, he realised he would soon be paying an inflated amount for Extending the lease. Alex arranged for a lease extension at the eleventh hour last August. Alex and the landlord ultimately agreed on the final figure of £5,500 . If he failed to meet the deadline, the figure would have become more exhorbitant by a minimum £1,100.
Last Winter we were approach by Mr and Mrs. N Carter , who moved into a one bedroom apartment in Downham Market in November 1999. We are asked if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Similar premises in Downham Market with a long lease were worth £270,000. The mid-range ground rent payable was £55 collected quarterly. The lease ended on 9 November 2101. Given that there were 75 years left we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of expenses.
Last Winter we were called by Ms Ashleigh Phillips , who completed a one bedroom flat in Downham Market in May 2004. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by an additional years. Comparative homes in Downham Market with a long lease were worth £173,800. The mid-range ground rent payable was £60 billed quarterly. The lease elapsed in 2081. Taking into account 55 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 not including expenses.