Unfortunately that a Feltwell residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Feltwell property prices.Where your lease has approximately 90 years left, you need to start considering a lease extension. If lease term dips below 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most leasehold owners in Feltwell will be able to extend under the legislation; however a lawyer will be able to confirm whether you are eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
Leasehold premises in Feltwell with over one hundred years outstanding on the lease are often regarded as a ‘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 maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | |
| Halifax | |
| Nationwide Building Society | |
| Virgin | |
| Yorkshire Building Society |
Retaining our service will provide you increased control over the value of your Feltwell leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last October Jack, came very close to the 80-year mark with the lease on his basement apartment in Feltwell. Having purchased his home twenty years ago, the length of the lease was of no concern. As luck would have it, he became aware that he would soon be paying an escalated premium for Extending the lease. Jack extended the lease just in the nick of time in September. Jack and the freeholder ultimately settled on an amount of £5,500 . If the lease had gone to less than eighty years, the price would have escalated by at least £875.
In 2014 we were called by Mr L Leroy who, having owned a studio apartment in Feltwell in November 1996. The question was if we could shed any light on how much (roughly) premium could be for a 90 year extension to my lease. Comparable flats in Feltwell with 100 year plus lease were valued about £275,000. The mid-range ground rent payable was £55 collected monthly. The lease finished in 2102. Having 76 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including legals.
In 2014 we were contacted by Mr and Mrs. G Morris who, having owned a newly refurbished flat in Feltwell in October 2000. We are asked if we could approximate the premium would be for a ninety year lease extension. Comparable residencies in Feltwell with 100 year plus lease were valued around £176,200. The mid-range amount of ground rent was £65 collected per annum. The lease concluded on 16 September 2082. Considering the 56 years remaining we calculated the premium to the landlord to extend the lease to be between £29,500 and £34,000 plus legals.