The nearer a domestic lease in Higham Ferrers gets to zero years unexpired, the more it reduces the value of the property. Where the residual term has, in excess of 125 years remaining then this decrease may be fractional that being said there will become a stage when a lease has under than eighty years left as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main rational as to why you should consider extending sooner as opposed to later. The majority of flat owners in Higham Ferrers will qualify for this right; nevertheless a lawyer should be able to confirm whether you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally accepted that a residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Santander | |
| Skipton Building Society | |
| The Mortgage Works | |
| Yorkshire Building Society |
The lawyers that we work with handle Higham Ferrers 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 conveyancer we work with provide it.
Last October Tyler, came dangerously close to the eighty-year threshold with the lease on his leasehold apartment in Higham Ferrers. In buying his property two decades ago, the lease term was of no bearing. Thankfully, he realised he would soon be paying an escalated premium for a lease extension. Tyler was able to extend his lease just under the wire last January. Tyler and the landlord ultimately settled on the final figure of £6,000 . If the lease had gone lower than 80 years, the price would have gone up by a minimum £1,025.
In 2010 we were e-mailed by Mr and Mrs. L Ali who, having bought a purpose-built flat in Higham Ferrers in June 1997. The question was if we could approximate the compensation to the landlord would be to extend the lease by ninety years. Comparable flats in Higham Ferrers with a long lease were worth £255,000. The mid-range amount of ground rent was £50 billed per annum. The lease finished in 2097. Taking into account 71 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 not including professional charges.
Last January we were contacted by Mrs M Turner , who acquired a one bedroom apartment in Higham Ferrers in July 2010. The dilemma was if we could approximate the price could be for a ninety year lease extension. Similar properties in Higham Ferrers with 100 year plus lease were in the region of £249,200. The mid-range amount of ground rent was £60 billed every twelve months. The lease finished in 2077. Given that there were 51 years left we calculated the compensation to the landlord to extend the lease to be between £43,700 and £50,600 not including expenses.