As the length of the unexpired term of a Emersons Green domestic lease lessens so does its value and therefore the value of your property. Where the lease has, in excess of 99 years to run then this decrease may be of little impact nevertheless there will become a stage when a lease has less than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease sooner than later. Most flat owners in Emersons Green will qualify for this right; that being said a conveyancer can confirm whether you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barclays plc | |
| Barnsley Building Society | |
| Coventry Building Society | |
| Nationwide Building Society |
The lawyers that we work with handle Emersons Green 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 lawyer we work with provide it.
Last Christmas Freddie, came precariously close to the 80-year mark with the lease on his studio apartment in Emersons Green. In buying his property two decades ago, the length of the lease was of minimal importance. As luck would have it, he became aware that he needed to take action soon on Extending the lease. Freddie arranged for a lease extension just under the wire last May. Freddie and the freeholder via the managing agents in the end agreed on an amount of £5,500 . If he not met the deadline, the price would have become more costly by a minimum £950.
Mr and Mrs. V Sharif moved into a first floor flat in Emersons Green in May 1996. The question was if we could shed any light on how much (approximately) price would be for a ninety year lease extension. Comparable residencies in Emersons Green with a long lease were in the region of £300,000. The average amount of ground rent was £50 billed every twelve months. The lease terminated on 26 February 2101. Given that there were 75 years as a residual term we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of fees.
Last October we were contacted by Mr and Mrs. I Brooks , who owned a newly refurbished apartment in Emersons Green in March 2009. We are asked if we could approximate the price would likely be to prolong the lease by a further 90 years. Comparable flats in Emersons Green with an extended lease were in the region of £250,400. The average ground rent payable was £65 collected monthly. The lease finished on 25 September 2090. Taking into account 64 years outstanding we calculated the compensation to the landlord for the lease extension to be within £19,000 and £22,000 plus fees.