There is no doubt about it a leasehold flat or house in Dronfield is a wasting asset as a result of the diminishing lease term. Where the residual term 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 less than eighty years unexpired 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 main rational as to why you should extend the lease without delay. Most flat owners in Dronfield will meet the qualifying criteria; however a conveyancer can advise whether you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold residencies in Dronfield with more than 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | |
| Coventry Building Society | |
| Godiva Mortgages | |
| Leeds Building Society | |
| Virgin |
The conveyancing solicitors that we work with handle 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 conveyancing solicitor we work with provide it.
Following lengthy negotiations with the freeholder of her studio apartment in Dronfield, Harriet started the lease extension process just as the lease was nearing the critical eighty-year deadline. The transaction completed in October 2012. The freeholder’s fees were kept to an absolute minimum.
Mrs I Vincent completed a basement flat in Dronfield in March 2002. We are asked if we could estimate the price would likely be to prolong the lease by 90 years. Comparable flats in Dronfield with an extended lease were valued around £210,000. The mid-range ground rent payable was £50 invoiced annually. The lease termination date was in 2106. Given that there were 80 years as a residual term we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of fees.
Last October we were phoned by Mr Max Sharif , who moved into a garden apartment in Dronfield in November 1995. We are asked if we could approximate the price could be for a 90 year lease extension. Similar homes in Dronfield with a long lease were in the region of £280,000. The mid-range amount of ground rent was £45 invoiced quarterly. The lease came to a finish on 18 March 2095. Taking into account 69 years unexpired we estimated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 not including costs.