Essington 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. It is the case that most Essington tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Essington you would be well advised to investigate if your lease has between seventy and 90 years left. There are good reasons why a Essington flat owner with a lease having around eighty years left should take action to ensure that a lease extension is effected without delay
Leasehold residencies in Essington with more than one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Coventry Building Society | |
| National Westminster Bank | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
Using our service gives you better control over the value of your Essington leasehold, as your property will be more valuable and marketable in respect 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.
Following lengthy correspondence with the landlord of her garden flat in Essington, Mollie initiated the lease extension process as the eighty year threshold was rapidly approaching. The legal work was finalised in April 2005. The landlord’s costs were kept to an absolute minimum.
Last Spring we were phoned by Mr and Mrs. H White , who acquired a one bedroom apartment in Essington in August 2004. We are asked if we could approximate the premium could be to extend the lease by an additional years. Comparable properties in Essington with an extended lease were worth £256,600. The mid-range amount of ground rent was £60 invoiced per annum. The lease finished in 2078. Given that there were 52 years left we estimated the compensation to the freeholder for the lease extension to be within £41,800 and £48,400 not including costs.
In 2013 we were approached by Mr and Mrs. M Martínez who, having owned a recently refurbished flat in Essington in September 2001. The dilemma was if we could approximate the price could be for a ninety year extension to my lease. Similar properties in Essington with an extended lease were worth £218,000. The average amount of ground rent was £45 billed annually. The lease finished in 2089. Given that there were 63 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £17,100 and £19,800 plus professional charges.