There is no doubt about it a leasehold flat or house in Leamington Spa is a wasting asset as a result of the diminishing lease term. Where the lease has, more than 99 years remaining then this decrease may be fractional that being said there will become a point in time when a lease has fewer than 80 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 reason why you should extend the lease sooner as opposed to later. Many flat owners in Leamington Spa will qualify for this right; nevertheless a conveyancing solicitor will be able to confirm whether you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years left, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Chelsea Building Society | |
| Coventry Building Society | |
| National Westminster Bank | |
| Royal Bank of Scotland |
Regardless of whether you are a tenant or a freeholder in Leamington Spa,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Leamington Spa valuers.
Last Spring Alex, started to get close to the 80-year threshold with the lease on his purpose- built apartment in Leamington Spa. In buying his property two decades ago, the lease term was of little importance. Fortunately, he realised he needed to take action soon on Extending the lease. Alex arranged for a lease extension just under the wire last July. Alex and the landlord who owned the flat above in the end agreed on an amount of £6,000 . If the lease had descended below eighty years, the premium would have gone up by a minimum £975.
Mr and Mrs. V Moreau owned a studio apartment in Leamington Spa in March 2005. We are asked if we could shed any light on how much (roughly) premium would likely be to extend the lease by a further 90 years. Comparable homes in Leamington Spa with an extended lease were valued around £176,200. The mid-range ground rent payable was £65 collected yearly. The lease concluded on 15 November 2082. Having 56 years outstanding we estimated the premium to the freeholder for the lease extension to be within £29,500 and £34,000 exclusive of professional charges.
Last Spring we were contacted by Mr and Mrs. M Wright , who moved into a one bedroom flat in Leamington Spa in June 2001. We are asked if we could approximate the premium could be for a ninety year extension to my lease. Comparative properties in Leamington Spa with a long lease were valued about £242,600. The average ground rent payable was £45 collected per annum. The lease concluded in 2093. Having 67 years remaining we estimated the premium to the freeholder to extend the lease to be between £11,400 and £13,200 not including professional charges.