When it comes to long leasehold property in Essington, you are actually buying a right to live in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are fewer than 80 years remaining. Anyone in Essington with a lease drawing near to 81 years remaining should seriously think of extending it as soon as possible. When a lease has fewer than eighty years remaining, under the current legislation the freeholder can calculate and charge a greater premium, assessed on a technical calculation, known as “marriage value” which is due.
It is generally considered that a property with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Chelsea Building Society | |
| Santander | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
Using our service will provide you increased control over the value of your Essington leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
George was the the leasehold proprietor of a high value apartment in Essington on the market with a lease of just over fifty eight years outstanding. George on an informal basis contacted his landlord a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £50 per annum. Ordinarily, ground rent would not be payable on a lease extension were George to exercise his statutory right. George obtained expert advice and secured satisfactory resolution informally and ending up with a market value flat.
Dr Nathan Flores purchased a basement flat in Essington in September 1995. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by ninety years. Identical properties in Essington with an extended lease were valued around £255,000. The average ground rent payable was £50 billed annually. The lease end date was in 2097. Given that there were 71 years unexpired we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of costs.
Last Summer we were approach by Mr V Bonnet , who completed a garden apartment in Essington in May 2003. We are asked if we could approximate the premium could be for a 90 year lease extension. Similar properties in Essington with 100 year plus lease were in the region of £254,200. The mid-range amount of ground rent was £60 billed every twelve months. The lease ran out in 2077. Considering the 51 years left we calculated the compensation to the freeholder to extend the lease to be between £43,700 and £50,600 exclusive of legals.