Formby leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Formby residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Formby you really ought to investigate if your lease has between 70 and ninety years remaining. There are compelling reasons why a Formby flat owner with a lease having around 80 years remaining should take steps to make sure that a lease extension is effected without delay
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years left, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Coventry Building Society | |
| Halifax | |
| Royal Bank of Scotland | |
| Virgin |
Lease extensions in Formby can be a difficult process. We recommend you secure professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
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 Finn, started to get near to the 80-year mark with the lease on his leasehold apartment in Formby. In buying his home twenty years previously, the length of the lease was of no relevance. Luckily, it dawned on him that he would imminently be paying way over the odds for a lease extension. Finn was able to extend his lease just under the wire last September. Finn and the freeholder subsequently settled on sum of £5,500 . If the lease had descended to less than 80 years, the figure would have become more costly by at least £875.
Mr L Campbell was assigned a lease of a first floor flat in Formby in February 2011. The dilemma was if we could approximate the premium could be to prolong the lease by 90 years. Identical properties in Formby with 100 year plus lease were in the region of £200,800. The mid-range ground rent payable was £65 collected yearly. The lease terminated on 8 March 2086. Given that there were 60 years unexpired we calculated the premium to the landlord for the lease extension to be between £20,900 and £24,200 plus legals.
Last year we were phoned by Mr and Mrs. I Martin , who bought a first floor flat in Formby in June 1999. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by an additional years. Identical properties in Formby with a long lease were worth £255,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease came to a finish in 2097. Given that there were 71 years left we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus costs.