Unfortunately that a Fulwood and Elston residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Fulwood and Elston property prices.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. If lease term slips below eighty years, you will end up paying 50% of the property's 'marriage value' in addition to 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 flat owners in Fulwood and Elston will be able to extend under the legislation; however a conveyancer will be able to confirm if you qualify for an extension. In some cases you may not be entitled. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your conveyancer from beginning to end of the formalities.
Leasehold premises in Fulwood and Elston with over one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service will provide you better control over the value of your Fulwood and Elston leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Trailing lengthy correspondence with the landlord of her studio apartment in Fulwood and Elston, Isobel started the lease extension process as the 80 year mark was quickly coming. The legal work completed in October 2006. The freeholder’s costs were negotiated to under six hundred GBP.
In 2009 we were approached by Ms F Ramírez who, having acquired a ground floor flat in Fulwood and Elston in February 2002. The question was if we could estimate the premium would likely be for a ninety year extension to my lease. Comparable homes in Fulwood and Elston with 100 year plus lease were in the region of £227,800. The average ground rent payable was £45 collected monthly. The lease ended in 2090. Taking into account 65 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 not including fees.
Last month we were contacted by Mr F Wood , who owned a recently refurbished apartment in Fulwood and Elston in June 1996. We are asked if we could estimate the price would likely be for a 90 year lease extension. Comparative residencies in Fulwood and Elston with 100 year plus lease were worth £275,000. The average amount of ground rent was £55 invoiced yearly. The lease lapsed in 2101. Given that there were 76 years left we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus fees.