It’s an underpublicised truth that a Great Ayton residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Great Ayton property market.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. If the number of years remaining falls under 80 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 additional value that a lease extension will add the property Most flat owners in Great Ayton will be able to extend under the legislation; however a lawyer should be able to clarify whether you qualify for an extension. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process is instigated and you will need to be guided by your lawyer for the duration of the process.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Birmingham Midshires | |
| Coventry Building Society | |
| Godiva Mortgages | |
| Nationwide Building Society |
The conveyancing solicitors that we work with procure Great Ayton 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.
Half a year ago Hugo, started to get near to the eighty-year threshold with the lease on his basement flat in Great Ayton. In buying his property 19 years previously, the lease term was of no interest. Fortunately, he realised he needed to take action soon on a lease extension. Hugo arranged for a lease extension just in the nick of time in September. Hugo and the landlord who owned the flat above eventually agreed on sum of £6,000 . If the lease had dipped to less than 80 years, the premium would have increased by at least £900.
In 2014 we were e-mailed by Dr Georgia Thomas who, having acquired a studio apartment in Great Ayton in August 2010. We are asked if we could estimate the price would be for a 90 year extension to my lease. Comparable properties in Great Ayton with a long lease were valued around £193,400. The mid-range ground rent payable was £65 collected yearly. The lease concluded on 27 February 2085. Having 59 years as a residual term we approximated the premium to the landlord to extend the lease to be within £21,900 and £25,200 plus costs.
In 2012 we were e-mailed by Dr Oscar Hernández who, having was assigned a lease of a purpose-built apartment in Great Ayton in July 2012. The question was if we could estimate the price could be for a ninety year extension to my lease. Comparative residencies in Great Ayton with a long lease were valued about £255,000. The mid-range amount of ground rent was £50 collected yearly. The lease expiry date was in 2096. Considering the 70 years outstanding we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of costs.