The closer a domestic lease in Guildford gets to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, over 125 years remaining then this decrease may be of little impact that being said there will become a stage when a lease has fewer than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should consider extending sooner as opposed to later. The majority of flat owners in Guildford will qualify for this right; nevertheless a conveyancer can advise whether you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold residencies in Guildford with more than one hundred years remaining 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 home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Santander | |
| The Mortgage Works | |
| Yorkshire Building Society |
The conveyancers that we work with undertake Guildford 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 conveyancing solicitor we work with provide it.
Felix was the the leasehold proprietor of a conversion flat in Guildford on the market with a lease of a few days over 61 years unexpired. Felix on an informal basis contacted his landlord being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £50 annually. Ordinarily, ground rent would not be due on a lease extension were Felix to exercise his statutory right. Felix obtained expert advice and was able to make an informed judgement and handle with the matter and readily saleable.
Mr and Mrs. F Clarke was assigned a lease of a newly refurbished apartment in Guildford in April 2009. We are asked if we could shed any light on how much (approximately) premium would be to extend the lease by a further 90 years. Identical homes in Guildford with an extended lease were worth £285,000. The mid-range amount of ground rent was £45 invoiced quarterly. The lease expired in 2097. Taking into account 71 years outstanding we estimated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 plus fees.
Last Summer we were called by Mr Jake Cox , who was assigned a lease of a recently refurbished flat in Guildford in September 1996. We are asked if we could estimate the price would be for a ninety year lease extension. Similar flats in Guildford with an extended lease were valued around £225,800. The average ground rent payable was £60 billed every twelve months. The lease ran out in 2086. Given that there were 60 years left we approximated the compensation to the freeholder for the lease extension to be within £24,700 and £28,600 not including costs.