There is no doubt about it a leasehold flat or house in Fairfield is a wasting asset as a result of the diminishing lease term. If the lease has, beyond 125 years remaining then this decrease may be of little impact that being said there will become a stage when a lease has under than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should extend the lease without delay. Many flat owners in Fairfield will meet the qualifying criteria; however a conveyancer should be able to advise if you qualify 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 conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Chelsea Building Society | |
| Godiva Mortgages | |
| Halifax | |
| Virgin |
Engaging our service will provide you increased control over the value of your Fairfield leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Freddie, came perilously close to the 80-year threshold with the lease on his studio apartment in Fairfield. In buying his property 19 years previously, the lease term was of minimal significance. Fortunately, he recognised he would soon be paying an inflated amount for Extending the lease. Freddie was able to extend his lease at the eleventh hour last March. Freddie and the landlord who owned the flat above subsequently agreed on the final figure of £6,000 . If the lease had gone lower than eighty years, the premium would have escalated by a minimum £1,050.
Last Autumn we were called by Dr K Brown , who moved into a ground floor apartment in Fairfield in February 2008. The question was if we could estimate the price would likely be to prolong the lease by an additional years. Similar properties in Fairfield with a long lease were valued around £166,800. The mid-range ground rent payable was £50 collected yearly. The lease elapsed in 2076. Given that there were 50 years unexpired we calculated the compensation to the landlord for the lease extension to be between £32,300 and £37,400 exclusive of costs.
In 2014 we were called by Dr Sarah González who, having moved into a studio apartment in Fairfield in November 2002. The question was if we could approximate the price would likely be to prolong the lease by ninety years. Identical flats in Fairfield with an extended lease were in the region of £280,000. The mid-range ground rent payable was £45 invoiced yearly. The lease expired on 11 September 2096. Having 70 years left we approximated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of costs.