It’s an underpublicised certainty that a East Bergholt residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the East Bergholt property market.Where your lease has approximately 90 years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips below 80 years - otherwise a higher premium will be due. Most leasehold owners in East Bergholt will be able to extend under the legislation; however a conveyancer will be able to confirm if you qualify for an extension. In some cases you may not qualify. There are also strict timetables and procedures to follow once the process is initiated and you will need to be guided by your lawyer throughout the process.
Leasehold premises in East Bergholt with over one hundred years remaining 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 situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barnsley Building Society | |
| Godiva Mortgages | |
| TSB | |
| The Mortgage Works |
Retaining our service gives you better control over the value of your East Bergholt leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Mason, came perilously close to the eighty-year threshold with the lease on his ground floor flat in East Bergholt. In buying his property two decades ago, the length of the lease was of minimal bearing. by good luck, it dawned on him that he needed to take action soon on Extending the lease. Mason was able to extend his lease just under the wire last January. Mason and the landlord subsequently settled on sum of £5,500 . If he had missed the deadline, the sum would have gone up by at least £900.
Mr and Mrs. D Turner moved into a studio flat in East Bergholt in November 2001. We are asked if we could estimate the premium would be for a ninety year lease extension. Comparable flats in East Bergholt with an extended lease were valued around £270,000. The mid-range amount of ground rent was £55 collected annually. The lease came to a finish in 2101. Taking into account 75 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus expenses.
Last March we were approach by Mr and Mrs. Y Thompson , who owned a one bedroom flat in East Bergholt in June 2000. The question was if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by a further 90 years. Comparable properties in East Bergholt with 100 year plus lease were in the region of £168,800. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease termination date was on 23 September 2081. Given that there were 55 years left we calculated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 exclusive of costs.