Earley leases on domestic deteriorating in value. Where your lease has about ninety years remaining, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease falls below this level then you start paying an additional element called marriage value. Leasehold owners in Earley will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to check if you qualify. In some situations you may not qualify. There are prescribed timetables and procedures to comply with once the process is triggered so it’s sensible to be guided by a conveyancer during the process.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | |
| National Westminster Bank | |
| Nationwide Building Society | |
| Santander | |
| Virgin |
Regardless of whether you are a tenant or a landlord in Earley,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Earley valuers.
18 months ago Jasper, started to get close to the eighty-year mark with the lease on his garden flat in Earley. Having purchased his home two decades ago, the unexpired term was of minimal relevance. As luck would have it, he recognised he would imminently be paying an escalated premium for a lease extension. Jasper arranged for a lease extension at the eleventh hour last March. Jasper and the freeholder in the end agreed on a premium of £5,500 . If he failed to meet the deadline, the figure would have become more costly by a minimum £975.
In 2013 we were called by Mrs Emma Alexander who, having completed a purpose-built flat in Earley in March 1998. We are asked if we could estimate the price would be for a 90 year lease extension. Identical homes in Earley with a long lease were valued around £290,000. The mid-range amount of ground rent was £45 collected monthly. The lease terminated in 2099. Given that there were 73 years outstanding we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of costs.
Mrs Natasha Norbert acquired a basement apartment in Earley in November 2005. We are asked if we could estimate the premium would likely be for a 90 year extension to my lease. Identical residencies in Earley with 100 year plus lease were worth £240,600. The mid-range ground rent payable was £65 invoiced yearly. The lease concluded in 2088. Given that there were 62 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £21,900 and £25,200 not including professional charges.