The closer a residential lease in Lickey End gets to zero years unexpired, the more it reduces the value of the property. Where the lease has, over 99 years to run then this decrease may be fractional nevertheless there will become a stage when a lease has fewer than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary reason why you should consider extending sooner as opposed to later. The majority of flat owners in Lickey End will meet the qualifying criteria; nevertheless a conveyancer should be able to confirm whether you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold properties in Lickey End with in excess of one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Godiva Mortgages | |
| Halifax | |
| Skipton Building Society | |
| Virgin |
Irrespective of whether you are a tenant or a landlord in Lickey End,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 Lickey End valuers.
During the course of the last few months Kyle, came critically close to the eighty-year mark with the lease on his leasehold flat in Lickey End. In buying his home 19 years ago, the lease term was of little importance. As luck would have it, he realised he needed to take action soon on a lease extension. Kyle arranged for a lease extension just ahead of time in March. Kyle and the freeholder via the managing agents subsequently agreed on sum of £5,500 . If the lease had dipped to less than eighty years, the premium would have increased by at least £975.
Last Autumn we were called by Mrs Shannon Davis , who owned a garden apartment in Lickey End in September 2011. The dilemma was if we could shed any light on how much (roughly) price would be for a 90 year lease extension. Identical premises in Lickey End with an extended lease were in the region of £216,000. The average amount of ground rent was £60 collected annually. The lease elapsed in 2084. Taking into account 58 years unexpired we calculated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 not including fees.
Dr Oliver André took over the lease of a first floor flat in Lickey End in August 2002. The question was if we could approximate the price could be to prolong the lease by an additional years. Similar properties in Lickey End with an extended lease were valued around £205,000. The mid-range ground rent payable was £50 collected monthly. The lease ended on 17 July 2104. Given that there were 78 years outstanding we estimated the premium to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of expenses.