Hednesford leases on domestic properties are gradually losing value. Where your lease has in the region of 90 years left, you should start thinking about a lease extension. If lease term is under 80 years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Hednesford will mostly qualify for a lease extension; however a solicitor should be able check your eligibility. In certain cases you may not qualify. There are prescribed timetables and formalities to follow once the process has commenced so it’s sensible to be guided by a conveyancer during the process.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Leeds Building Society | |
| National Westminster Bank | |
| TSB | |
| Virgin |
The lawyers that we work with procure Hednesford 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.
Theo was the the leasehold owner of a conversion apartment in Hednesford on the market with a lease of fraction over 59 years left. Theo on an informal basis approached his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 yearly. Ordinarily, ground rent would not be payable on a lease extension were Theo to exercise his statutory right. Theo procured expert advice and was able to make an informed decision and deal with the matter and ending up with a market value flat.
In 2012 we were contacted by Ms Lucy Davies who, having owned a basement apartment in Hednesford in November 2005. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Similar flats in Hednesford with an extended lease were valued around £208,200. The mid-range amount of ground rent was £65 billed every twelve months. The lease ended on 3 July 2087. Taking into account 61 years outstanding we calculated the premium to the landlord for the lease extension to be between £19,000 and £22,000 plus expenses.
Last Summer we were called by Ms R Rose , who acquired a garden flat in Hednesford in March 2007. We are asked if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Comparative premises in Hednesford with a long lease were valued around £260,000. The average amount of ground rent was £50 invoiced yearly. The lease ran out in 2098. Having 72 years unexpired we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including professional charges.