Ipswich leases on residential deteriorating in value. Where your lease has in the region of 90 years left, you should start thinking about a lease extension. If lease term dips under 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Ipswich will mostly be legally entitled to a lease extension; however a solicitor will confirm your eligibility. In certain situations you may not be entitled. There are also strict timetables and formalities to comply with once the process has started so it’s sensible to be guided by a conveyancing solicitor during the process.
It is generally accepted that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barnsley Building Society | |
| Birmingham Midshires | |
| The Mortgage Works | |
| Virgin |
Retaining our service will provide you increased control over the value of your Ipswich leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of protracted correspondence with the landlord of her garden flat in Ipswich, Natalie commenced the lease extension process just as her lease was nearing the crucial eighty-year threshold. The transaction completed in June 2015. The freeholder’s fees were negotiated to about 500 GBP.
In 2012 we were phoned by Mr and Mrs. D García who, having purchased a ground floor flat in Ipswich in May 1998. We are asked if we could approximate the premium could be for a ninety year lease extension. Similar flats in Ipswich with 100 year plus lease were worth £233,200. The average amount of ground rent was £60 collected annually. The lease finished in 2087. Having 61 years left we calculated the compensation to the freeholder for the lease extension to be between £22,800 and £26,400 plus legals.
In 2013 we were contacted by Ms R Cooper who, having acquired a newly refurbished flat in Ipswich in February 2000. The question was if we could approximate the compensation to the landlord would be to extend the lease by ninety years. Comparative premises in Ipswich with an extended lease were worth £171,800. The average ground rent payable was £55 invoiced annually. The lease ran out in 2076. Given that there were 50 years left we calculated the premium to the freeholder to extend the lease to be within £32,300 and £37,400 plus legals.