As the length of the unexpired term of a Leamington Spa residential lease decreases so does its value and therefore the value of your property. If the residual term has, in excess of one hundred years remaining then this decrease may be negligible nevertheless there will become a stage when a lease has under than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should consider extending without delay. Many flat owners in Leamington Spa will meet the qualifying criteria; however a conveyancing solicitor can confirm whether you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold premises in Leamington Spa with in excess of one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Engaging our service will provide you enhanced control over the value of your Leamington Spa leasehold, as your property will be more valuable and marketable in terms of lease length should you decide 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.
Oscar owned a studio flat in Leamington Spa on the market with a lease of just over 72 years left. Oscar on an informal basis approached his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Oscar to exercise his statutory right. Oscar obtained expert advice and was able to make a more informed judgement and deal with the matter and sell the property.
In 2009 we were approached by Dr V Fournier who, having took over the lease of a one bedroom flat in Leamington Spa in August 2001. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year lease extension. Identical flats in Leamington Spa with an extended lease were valued around £208,200. The mid-range ground rent payable was £65 invoiced monthly. The lease elapsed on 4 February 2087. Taking into account 61 years unexpired we approximated the premium to the freeholder to extend the lease to be within £20,000 and £23,000 plus expenses.
Dr A Alexander purchased a newly refurbished flat in Leamington Spa in November 1995. The question was if we could shed any light on how much (roughly) price would be for a ninety year lease extension. Comparable flats in Leamington Spa with 100 year plus lease were in the region of £260,000. The average amount of ground rent was £50 invoiced monthly. The lease ended on 8 November 2098. Given that there were 72 years unexpired we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of expenses.