The closer a domestic lease in Fishponds gets to zero years unexpired, the more it reduces the value of the property. Where the residual term has, more than 125 years to run then this decrease may be negligible however there will become a point in time when a lease has under than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main logic behind why you should consider extending sooner rather than later. The majority of flat owners in Fishponds will qualify for this right; nevertheless a lawyer can advise whether you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Birmingham Midshires | |
| Chelsea Building Society | |
| Godiva Mortgages | |
| Royal Bank of Scotland |
Irrespective of whether you are a tenant or a freeholder in Fishponds,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 Fishponds valuers.
During the course of the last few months Arthur, started to get close to the eighty-year threshold with the lease on his ground floor apartment in Fishponds. In buying his flat 18 years ago, the lease term was of little concern. by good luck, he became aware that he would imminently be paying an inflated amount for Extending the lease. Arthur arranged for a lease extension at the eleventh hour in June. Arthur and the landlord who owned the flat above in the end settled on sum of £6,000 . If the lease had descended to less than eighty years, the amount would have increased by a minimum £875.
Mr and Mrs. Y Clarke acquired a one bedroom flat in Fishponds in October 2007. We are asked if we could shed any light on how much (roughly) price would be for a 90 year extension to my lease. Similar premises in Fishponds with a long lease were in the region of £227,800. The mid-range amount of ground rent was £45 collected monthly. The lease terminated in 2091. Taking into account 65 years remaining we estimated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 not including fees.
Last Winter we were called by Mrs I Harris , who moved into a first floor apartment in Fishponds in January 1999. We are asked if we could approximate the premium would be to extend the lease by an additional years. Identical premises in Fishponds with a long lease were valued about £275,000. The average ground rent payable was £55 invoiced every twelve months. The lease elapsed in 2102. Given that there were 76 years remaining we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of professional charges.