As the the remaining lease term of a Johnstown domestic lease lessens so does its value and therefore the value of your property. If the lease has, in excess of 99 years remaining then this decrease may be of little impact nevertheless there will become a point in time when a lease has under than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease without delay. The majority of flat owners in Johnstown will meet the qualifying criteria; that being said a conveyancing solicitor can confirm whether you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is generally considered that a property with over one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Birmingham Midshires | |
| Chelsea Building Society | |
| Santander | |
| TSB |
The lawyers that we work with handle Johnstown 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.
Lewis owned a conversion flat in Johnstown being marketed with a lease of a few days over fifty eight years unexpired. Lewis on an informal basis spoke with his landlord a well known Bristol-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Lewis to invoke his statutory right. Lewis obtained expert legal guidance and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
Dr Madeleine Garcia bought a recently refurbished apartment in Johnstown in November 1998. The question was if we could shed any light on how much (roughly) premium could be to prolong the lease by a further 90 years. Comparative flats in Johnstown with an extended lease were valued around £189,000. The average ground rent payable was £55 collected yearly. The lease expiry date was in 2079. Considering the 53 years unexpired we calculated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 exclusive of fees.
Last Winter we were phoned by Ms Jasmine Lewis , who completed a basement apartment in Johnstown in February 2011. We are asked if we could estimate the price would likely be to prolong the lease by ninety years. Similar residencies in Johnstown with a long lease were valued about £290,000. The mid-range ground rent payable was £45 billed monthly. The lease came to a finish on 28 January 2099. Considering the 73 years as a residual term we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of costs.