Lichfield leases on residential properties are gradually losing value. if your lease has about 90 years unexpired, you should start considering the need for a lease extension. 80 years is a significant number: when the remaining term of a lease drops below this level then you start paying an additional element called marriage value. Flat owners in Lichfield will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm your eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced so it’s prudent to be guided by a lawyer during the process.
Leasehold properties in Lichfield with in excess of 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | |
| Leeds Building Society | |
| Santander | |
| Skipton Building Society | |
| Yorkshire Building Society |
Regardless of whether you are a tenant or a landlord in Lichfield,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Lichfield valuers.
Teddy was the the leasehold owner of a 2 bedroom flat in Lichfield on the market with a lease of fraction over 59 years outstanding. Teddy on an informal basis approached his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Teddy to exercise his statutory right. Teddy obtained expert advice and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
Last Christmas we were e-mailed by Mr and Mrs. B Anderson , who acquired a one bedroom flat in Lichfield in November 1998. We are asked if we could approximate the price would be for a 90 year lease extension. Similar premises in Lichfield with an extended lease were worth £206,200. The average amount of ground rent was £60 collected per annum. The lease ended on 1 June 2082. Having 56 years outstanding we estimated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 plus professional charges.
In 2009 we were approached by Ms P Davies who, having completed a newly refurbished flat in Lichfield in September 2010. The dilemma was if we could approximate the price would likely be to extend the lease by an additional years. Comparative flats in Lichfield with a long lease were in the region of £200,000. The average amount of ground rent was £50 collected monthly. The lease came to a finish on 26 February 2103. Having 77 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 plus professional charges.