There is no doubt about it a leasehold property in Dronfield is a wasting asset as a result of the diminishing lease term. If the lease has, beyond 99 years remaining then this decrease may be of little impact that being said there will become a stage when a lease has under than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should consider extending sooner than later. Most flat owners in Dronfield will qualify for this right; however a conveyancing solicitor can confirm whether you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold residencies in Dronfield with over one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Leeds Building Society | |
| Nationwide Building Society | |
| Skipton Building Society | |
| TSB | |
| Yorkshire Building Society |
The lawyers that we work with undertake Dronfield 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.
Trailing lengthy discussions with the landlord of her purpose-built apartment in Dronfield, Elizabeth initiated the lease extension process just as her lease was coming close to the all-important eighty-year threshold. The transaction completed in May 2014. The landlord’s charges were kept to an absolute minimum.
Last month we were phoned by Mr and Mrs. B Davies , who took over the lease of a basement flat in Dronfield in September 1997. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by a further 90 years. Similar premises in Dronfield with a long lease were worth £275,000. The mid-range amount of ground rent was £65 invoiced per annum. The lease ended in 2094. Having 68 years outstanding we calculated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 not including expenses.
In 2011 we were phoned by Mrs B Thomas who, having purchased a ground floor flat in Dronfield in April 1997. The question was if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Comparable premises in Dronfield with 100 year plus lease were in the region of £208,600. The average ground rent payable was £60 collected every twelve months. The lease expiry date was on 12 January 2083. Considering the 57 years as a residual term we calculated the premium to the landlord to extend the lease to be between £30,400 and £35,200 plus professional charges.