As the length of the unexpired term of a Leamington Spa residential lease lessens so does its value and therefore the value of your property. If the lease has, beyond 100 years remaining then this decrease may be fractional that being said there will become a point in time when a lease has less 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 primary logic behind why you should consider extending sooner rather than later. Most flat owners in Leamington Spa will meet the qualifying criteria; nevertheless a conveyancing solicitor will be able to advise if you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold properties in Leamington Spa with over 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Birmingham Midshires | |
| Godiva Mortgages | |
| TSB | |
| The Mortgage Works |
Regardless of whether you are a tenant or a freeholder in Leamington Spa,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Leamington Spa valuers.
Milo was the the leasehold proprietor of a studio flat in Leamington Spa on the market with a lease of a few days over sixty years unexpired. Milo on an informal basis spoke with his freeholder being a well known local-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 per annum. Ordinarily, ground rent would not be due on a lease extension were Milo to exercise his statutory right. Milo procured expert advice and secured an acceptable deal informally and readily saleable.
Last Spring we were approach by Ms Emily Miller , who acquired a first floor flat in Leamington Spa in July 2001. We are asked if we could estimate the premium would likely be to prolong the lease by a further 90 years. Similar properties in Leamington Spa with 100 year plus lease were valued about £270,000. The mid-range amount of ground rent was £55 collected per annum. The lease finished in 2101. Taking into account 75 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of professional charges.
In 2012 we were approached by Dr T Parker who, having owned a first floor apartment in Leamington Spa in June 2003. We are asked if we could approximate the premium would be for a ninety year lease extension. Identical properties in Leamington Spa with an extended lease were valued about £168,800. The average amount of ground rent was £60 invoiced per annum. The lease ended in 2081. Taking into account 55 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 not including expenses.