The market value of Feltwell leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate substantially once the remaining term is less than 80 years
It is conventional wisdom that a property with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Coventry Building Society | |
| National Westminster Bank | |
| Santander | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
Regardless of whether you are a tenant or a freeholder in Feltwell,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Feltwell valuers.
In 2014 Theo, started to get near to the eighty-year mark with the lease on his purpose- built flat in Feltwell. Having purchased his home 19 years ago, the length of the lease was of no interest. As luck would have it, he realised he needed to take steps soon on a lease extension. Theo arranged for a lease extension just ahead of time last August. Theo and the freeholder in the end agreed on sum of £5,000 . If the lease had dipped lower than 80 years, the figure would have become more exhorbitant by at least £1,150.
Dr U Jones purchased a basement flat in Feltwell in March 2000. We are asked if we could estimate the price would likely be for a 90 year lease extension. Comparable properties in Feltwell with 100 year plus lease were in the region of £183,600. The average amount of ground rent was £65 billed monthly. The lease expired in 2083. Taking into account 57 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 plus costs.
Last Summer we were phoned by Dr Hugo James , who bought a basement flat in Feltwell in July 1998. We are asked if we could approximate the compensation to the landlord could be to extend the lease by an additional years. Comparable premises in Feltwell with 100 year plus lease were in the region of £250,000. The average ground rent payable was £50 billed yearly. The lease came to a finish in 2094. Taking into account 68 years left we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus professional charges.