Unfortunately that a Endon residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Endon property prices.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. If the number of years remaining drops under 80 years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property The majority of flat owners in Endon will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm whether you are eligibility. In some situations you may not qualify. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the process.
Leasehold properties in Endon with in excess of one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value 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 justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Birmingham Midshires | |
| Coventry Building Society | |
| Santander | |
| TSB |
The conveyancing solicitors that we work with undertake Endon 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 conveyancer we work with provide it.
Last year Rory, came precariously close to the eighty-year mark with the lease on his one bedroom flat in Endon. Having bought his home 19 years previously, the length of the lease was of no bearing. Fortunately, he recognised he needed to take action soon on a lease extension. Rory extended the lease just ahead of time in July. Rory and the landlord eventually settled on an amount of £5,000 . If the lease had dropped to less than eighty years, the price would have escalated by a minimum £1,100.
In 2013 we were contacted by Dr N Laurent who, having completed a basement apartment in Endon in June 2006. The dilemma was if we could shed any light on how much (roughly) price would be for a ninety year extension to my lease. Identical properties in Endon with an extended lease were valued about £181,600. The mid-range amount of ground rent was £55 invoiced quarterly. The lease concluded on 17 June 2078. Taking into account 52 years outstanding we approximated the compensation to the landlord to extend the lease to be between £30,400 and £35,200 plus expenses.
Last month we were phoned by Dr J Peterson , who owned a first floor flat in Endon in March 2006. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year lease extension. Comparative flats in Endon with a long lease were in the region of £285,000. The mid-range amount of ground rent was £45 billed quarterly. The lease finished in 2098. Given that there were 72 years remaining we calculated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 not including fees.