With a domestic leasehold property in Fir Vale and Wadsley Bridge, you are actually purchasing an entitlement to live in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive especially once there are fewer than eighty years left. Anyone in Fir Vale and Wadsley Bridge with a lease approaching 81 years remaining should seriously consider extending it without delay. When the lease term has less than eighty years outstanding, under the current statute the freeholder can calculate and demand a larger amount, assessed on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold properties in Fir Vale and Wadsley Bridge with over one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service gives you enhanced control over the value of your Fir Vale and Wadsley Bridge 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 are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Kian owned a 2 bedroom flat in Fir Vale and Wadsley Bridge on the market with a lease of a few days over 72 years outstanding. Kian informally spoke with his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £100 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Kian to exercise his statutory right. Kian procured expert legal guidance and was able to make an informed decision and handle with the matter and ending up with a market value flat.
Last Christmas we were contacted by Dr J Cooper , who was assigned a lease of a basement apartment in Fir Vale and Wadsley Bridge in April 1996. The question was if we could shed any light on how much (roughly) price would be for a ninety year lease extension. Similar properties in Fir Vale and Wadsley Bridge with an extended lease were worth £250,000. The average amount of ground rent was £50 invoiced every twelve months. The lease termination date was in 2095. Considering the 69 years outstanding we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus legals.
Dr Thomas Patel moved into a recently refurbished apartment in Fir Vale and Wadsley Bridge in March 2005. The dilemma was if we could approximate the price would likely be to prolong the lease by ninety years. Similar flats in Fir Vale and Wadsley Bridge with a long lease were valued about £290,000. The average amount of ground rent was £60 collected every twelve months. The lease terminated on 17 October 2106. Taking into account 80 years remaining we approximated the premium to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of fees.