Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will usually be granted for a prescribed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Earley. Clearly, the period of lease remaining reduces over time. This is often overlooked and only becomes a problem when the flat or house needs to be sold or refinanced. The fewer the years remaining the less it is worth and the more it will cost to extend the lease. Qualifying long lease owners in Earley have the right to extend the lease for a further 90 years under statute. Please give careful deliberation before delaying your Earley lease extension. Holding off the cost now likely increases the price you will ultimately have to pay to extend your lease
Leasehold properties in Earley with in excess of 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Chelsea Building Society | |
| Santander | |
| Skipton Building Society |
Retaining our service will provide you enhanced control over the value of your Earley leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Cameron, started to get close to the 80-year threshold with the lease on his two bedroom apartment in Earley. Having purchased his property two decades ago, the lease term was of minimal relevance. Luckily, he noticed he would soon be paying an escalated premium for Extending the lease. Cameron extended the lease just under the wire in April. Cameron and the landlord subsequently agreed on sum of £6,000 . If he not met the deadline, the amount would have gone up by a minimum £1,100.
In 2012 we were contacted by Dr Alexandra Michel who, having was assigned a lease of a one bedroom apartment in Earley in October 2003. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by 90 years. Comparable properties in Earley with an extended lease were valued about £216,000. The average ground rent payable was £60 billed quarterly. The lease terminated on 13 March 2084. Considering the 58 years unexpired we approximated the premium to the landlord for the lease extension to be within £28,500 and £33,000 exclusive of expenses.
Last month we were approach by Mr and Mrs. L Brooks , who acquired a garden apartment in Earley in August 2008. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year extension to my lease. Identical residencies in Earley with 100 year plus lease were valued about £205,000. The mid-range amount of ground rent was £50 billed yearly. The lease expired in 2104. Having 78 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £7,600 and £8,800 exclusive of fees.