Earley leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Earley residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Earley you must investigate if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
Leasehold premises in Earley with in excess of one hundred 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 home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Coventry Building Society | |
| Halifax | |
| Skipton Building Society |
Regardless of whether you are a tenant or a landlord in Earley,the lease extension lawyers 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.
Seth was the the leasehold proprietor of a 2 bedroom apartment in Earley on the market with a lease of just over 59 years unexpired. Seth informally spoke with his freeholder a well known London-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Seth to invoke his statutory right. Seth procured expert advice and secured satisfactory deal without resorting to tribunal and sell the property.
Last month we were called by Mr and Mrs. W André , who bought a recently refurbished apartment in Earley in October 2007. We are asked if we could shed any light on how much (approximately) premium could be to extend the lease by a further 90 years. Identical properties in Earley with a long lease were worth £280,000. The mid-range amount of ground rent was £45 billed every twelve months. The lease came to a finish in 2095. Given that there were 69 years unexpired we estimated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of fees.
Last month we were phoned by Mr and Mrs. F David , who purchased a garden apartment in Earley in October 2000. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year lease extension. Similar residencies in Earley with 100 year plus lease were worth £216,000. The average ground rent payable was £60 invoiced quarterly. The lease ended on 21 August 2084. Taking into account 58 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 plus expenses.