Leicester leases on residential properties are gradually losing value. Where your lease has about ninety years remaining, you should start thinking about a lease extension. If lease term is less than 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Leicester will usually qualify for a lease extension; however a solicitor will confirm if you qualify. In some situations you may not be entitled. There are prescribed timetables and formalities to comply with once the process is triggered so it’s wise to be guided by a conveyancing solicitor during the process.
Leasehold properties in Leicester with over one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Coventry Building Society | |
| Leeds Building Society | |
| Nationwide Building Society | |
| Yorkshire Building Society |
The conveyancers that we work with handle Leicester 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.
Last Autumn Riley, started to get near to the eighty-year threshold with the lease on his leasehold flat in Leicester. Having purchased his flat 19 years previously, the unexpired term was of minimal concern. Thankfully, he recognised he needed to take action soon on a lease extension. Riley extended the lease just ahead of time last April. Riley and the landlord who owned the flat above ultimately agreed on an amount of £6,000 . If the lease had dipped lower than 80 years, the amount would have increased by a minimum £875.
Mr V Hall completed a purpose-built flat in Leicester in October 2012. The question was if we could estimate the premium would be to prolong the lease by 90 years. Similar premises in Leicester with 100 year plus lease were in the region of £225,800. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease came to a finish on 14 January 2086. Given that there were 60 years unexpired we approximated the premium to the freeholder for the lease extension to be between £25,700 and £29,600 not including expenses.
Mrs N Patel moved into a basement flat in Leicester in February 2001. We are asked if we could estimate the price would likely be to prolong the lease by ninety years. Comparable homes in Leicester with a long lease were valued around £210,000. The mid-range ground rent payable was £50 billed quarterly. The lease elapsed on 8 July 2106. Considering the 80 years left we calculated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 not including legals.