Unfortunately that a Leegomery residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Leegomery property market.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. If the number of years remaining falls under eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Leegomery will be able to extend under the legislation; however a conveyancer should be able to confirm whether you are eligibility. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer for the duration of the formalities.
Leasehold properties in Leegomery with in excess of 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Halifax | |
| Nationwide Building Society | |
| Royal Bank of Scotland | |
| Virgin |
Using our service will provide you better control over the value of your Leegomery leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last October Muhammad, came dangerously near to the 80-year threshold with the lease on his ground floor flat in Leegomery. In buying his flat two decades ago, the lease term was of little concern. As luck would have it, he noticed he needed to take action soon on Extending the lease. Muhammad extended the lease just under the wire last August. Muhammad and the freeholder via the management company subsequently agreed on the final figure of £5,000 . If the lease had dipped to less than eighty years, the price would have gone up by at least £850.
Last year we were e-mailed by Dr F Adams , who bought a recently refurbished apartment in Leegomery in October 1999. The question was if we could shed any light on how much (roughly) premium would be to extend the lease by 90 years. Similar properties in Leegomery with 100 year plus lease were valued around £166,400. The mid-range amount of ground rent was £60 collected quarterly. The lease ran out in 2080. Considering the 54 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £32,300 and £37,400 plus fees.
Mr and Mrs. A Lefèvre completed a one bedroom flat in Leegomery in June 2001. We are asked if we could estimate the price would likely be to prolong the lease by an additional years. Similar residencies in Leegomery with an extended lease were worth £227,800. The average amount of ground rent was £45 billed quarterly. The lease ended on 12 February 2091. Given that there were 65 years unexpired we calculated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 plus professional charges.