It’s an underpublicised truth that a Leominster residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Leominster property market.Once your lease nears 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips below eighty years - otherwise a higher premium will be payable. The majority of leasehold owners in Leominster will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the process.
It is generally accepted that a property with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Barnsley Building Society | |
| Godiva Mortgages | |
| National Westminster Bank | |
| TSB |
Lease extensions in Leominster can be a difficult process. We recommend you obtain professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Leominster lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to lengthy correspondence with the landlord of her purpose-built flat in Leominster, Isabella commenced the lease extension process as the eighty year mark was swiftly advancing. The lease extension completed in July 2013. The freeholder’s costs were kept to an absolute minimum.
Last Winter we were e-mailed by Mr and Mrs. T Williams , who moved into a newly refurbished apartment in Leominster in October 2007. The question was if we could approximate the price would be to extend the lease by 90 years. Identical residencies in Leominster with a long lease were valued about £300,000. The mid-range amount of ground rent was £50 collected quarterly. The lease elapsed in 2102. Having 76 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of professional charges.
In 2009 we were approached by Mr and Mrs. W Gunderson who, having moved into a purpose-built apartment in Leominster in May 2003. The question was if we could approximate the premium would likely be for a 90 year extension to my lease. Similar residencies in Leominster with a long lease were valued around £252,800. The mid-range amount of ground rent was £65 collected quarterly. The lease came to a finish in 2091. Taking into account 65 years left we estimated the compensation to the landlord for the lease extension to be between £17,100 and £19,800 not including professional charges.