Unfortunately that a Fulwood and Elston residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early 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 dips under 80 years, you will end up paying half 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 additional 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 should be able to clarify if you are eligibility. In some cases you may not qualify. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
Leasehold residencies in Fulwood and Elston with over one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Coventry Building Society | |
| Godiva Mortgages | |
| Leeds Building Society | |
| Santander |
Regardless of whether you are a tenant or a landlord in Fulwood and Elston,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Fulwood and Elston valuers.
Jonathan owned a high value flat in Fulwood and Elston being marketed with a lease of fraction over 59 years unexpired. Jonathan on an informal basis spoke with his freeholder being a well known London-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 rise in the rent to £125 annually. No ground rent would be payable on a lease extension were Jonathan to exercise his statutory right. Jonathan procured expert advice and secured satisfactory deal without resorting to tribunal and ending up with a market value flat.
Mr and Mrs. E Sharif owned a one bedroom flat in Fulwood and Elston in October 2008. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year extension to my lease. Identical properties in Fulwood and Elston with a long lease were worth £210,600. The mid-range amount of ground rent was £45 billed per annum. The lease finished in 2088. Taking into account 62 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £18,100 and £20,800 plus professional charges.
Mr and Mrs. M González purchased a basement flat in Fulwood and Elston in August 1995. We are asked if we could shed any light on how much (approximately) price would be to extend the lease by ninety years. Comparable residencies in Fulwood and Elston with 100 year plus lease were in the region of £265,000. The average amount of ground rent was £50 billed per annum. The lease came to a finish on 6 March 2099. Given that there were 73 years left we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of expenses.