The market value of Fradley leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase materialy once the remaining term is below than eighty years
Leasehold properties in Fradley with over one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Coventry Building Society | |
| Royal Bank of Scotland | |
| Virgin | |
| Yorkshire Building Society |
The conveyancers that we work with handle Fradley lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
During the course of the last few months Ollie, started to get close to the 80-year threshold with the lease on his first floor flat in Fradley. In buying his home 19 years ago, the length of the lease was of little concern. Luckily, he noticed he needed to take steps soon on a lease extension. Ollie extended the lease just under the wire last April. Ollie and the freeholder via the managing agents eventually settled on the final figure of £5,000 . If he had missed the deadline, the price would have increased by a minimum £1,125.
In 2014 we were phoned by Mr Dylan Gunderson who, having moved into a first floor apartment in Fradley in April 2004. The dilemma was if we could approximate the premium could be for a 90 year extension to my lease. Identical premises in Fradley with an extended lease were worth £255,000. The mid-range amount of ground rent was £50 invoiced quarterly. The lease finished on 27 March 2097. Considering the 71 years remaining we calculated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including legals.
Mrs Alexandra Ali purchased a first floor flat in Fradley in January 2002. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year lease extension. Similar homes in Fradley with a long lease were in the region of £254,200. The average ground rent payable was £60 collected every twelve months. The lease expired in 2077. Given that there were 51 years unexpired we calculated the premium to the freeholder to extend the lease to be within £43,700 and £50,600 exclusive of fees.