It’s an underpublicised truth that a Formby residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Formby property market.Where your lease has approximately 90 years left, you need to start considering a lease extension. If the number of years remaining dips under eighty years, you will then be required to pay half 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 extra value that a lease extension will add the property The majority of leasehold owners in Formby will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you qualify for an extension. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process is initiated and you will need to be guided by your conveyancing solicitor for the duration of the process.
It is generally considered that a property with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barnsley Building Society | |
| Chelsea Building Society | |
| Halifax | |
| Skipton Building Society |
Lease extensions in Formby can be a difficult process. We recommend you get professional help from a conveyancer and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Formby lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Dylan, started to get near to the eighty-year threshold with the lease on his basement apartment in Formby. Having purchased his home two decades ago, the length of the lease was of no importance. As luck would have it, he recognised he would imminently be paying an inflated amount for a lease extension. Dylan arranged for a lease extension just in the nick of time last May. Dylan and the landlord subsequently agreed on a premium of £6,000 . If the lease had slipped lower than eighty years, the figure would have increased by a minimum £925.
Last month we were called by Mr and Mrs. U Dupont , who took over the lease of a studio apartment in Formby in February 2009. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparative residencies in Formby with 100 year plus lease were in the region of £260,000. The average amount of ground rent was £50 collected every twelve months. The lease ran out on 26 April 2098. Considering the 72 years outstanding we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of expenses.
In 2013 we were called by Dr Natasha Watson who, having completed a one bedroom flat in Formby in September 1997. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year lease extension. Comparative flats in Formby with an extended lease were in the region of £256,600. The mid-range ground rent payable was £60 invoiced per annum. The lease ran out in 2078. Considering the 52 years outstanding we approximated the premium to the freeholder for the lease extension to be within £41,800 and £48,400 exclusive of fees.