There is no doubt about it a leasehold flat or house in Glenfield is a wasting asset as a result of the diminishing lease term. Where the lease has, more than one hundred years to run then this decrease may be negligible however there will become a point in time when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should extend the lease sooner than later. Many flat owners in Glenfield will qualify for this right; that being said a conveyancer can advise if you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is generally considered that a residential leasehold with over 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Godiva Mortgages | |
| Halifax | |
| TSB | |
| Royal Bank of Scotland |
Using our service will provide you better control over the value of your Glenfield leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Edward owned a studio apartment in Glenfield on the market with a lease of a little over 59 years left. Edward on an informal basis spoke with his freeholder a well known Bristol-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 initially set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Edward to invoke his statutory right. Edward procured expert legal guidance and was able to make a more informed judgement and handle with the matter and sell the property.
Last Autumn we were approach by Mr and Mrs. Y González , who acquired a basement flat in Glenfield in May 2011. We are asked if we could shed any light on how much (approximately) price would be for a ninety year extension to my lease. Identical homes in Glenfield with 100 year plus lease were in the region of £205,000. The average ground rent payable was £50 collected yearly. The lease lapsed on 10 April 2104. Having 78 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of costs.
Mr and Mrs. K González took over the lease of a basement apartment in Glenfield in October 2002. We are asked if we could estimate the premium would be for a ninety year lease extension. Similar homes in Glenfield with 100 year plus lease were valued around £267,600. The mid-range ground rent payable was £65 invoiced annually. The lease expiry date was on 9 March 2093. Taking into account 67 years remaining we calculated the compensation to the freeholder for the lease extension to be within £14,300 and £16,400 plus fees.