There is no doubt about it a leasehold flat or house in Freshwater Bay is a wasting asset as a result of the shortening lease. If the lease has, in excess of 100 years to run then this decrease may be fractional that being said there will become a stage when a lease has less than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main reason why you should consider extending without delay. Most flat owners in Freshwater Bay will meet the qualifying criteria; that being said a conveyancer can advise whether you are eligible to extend your lease. 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 more than 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service will provide you enhanced control over the value of your Freshwater Bay leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Hunter was the the leasehold owner of a high value flat in Freshwater Bay being sold with a lease of just over fifty eight years unexpired. Hunter on an informal basis contacted his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Hunter to invoke his statutory right. Hunter obtained expert advice and was able to make a more informed judgement and deal with the matter and sell the property.
Mr and Mrs. U Nelson bought a purpose-built apartment in Freshwater Bay in August 2008. The question was if we could estimate the compensation to the landlord would be to prolong the lease by a further 90 years. Identical flats in Freshwater Bay with an extended lease were worth £189,000. The average ground rent payable was £55 billed yearly. The lease came to a finish in 2079. Taking into account 53 years remaining we calculated the premium to the landlord for the lease extension to be within £28,500 and £33,000 not including legals.
Mr M James owned a garden flat in Freshwater Bay in May 1998. We are asked if we could approximate the premium would likely be to prolong the lease by an additional years. Comparable flats in Freshwater Bay with a long lease were valued about £290,000. The average ground rent payable was £45 collected monthly. The lease came to a finish on 27 September 2099. Taking into account 73 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of professional charges.