It’s a harsh certainty that a Littleport residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Littleport property market.Where your lease has approximately ninety years left, you need to start considering a lease extension. If lease term dips below eighty years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most flat owners in Littleport will be able to extend under the legislation; however a conveyancer should be able to clarify whether you are eligibility. In some cases you may not be entitled. 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 formalities.
Leasehold premises in Littleport with more than one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Coventry Building Society | |
| National Westminster Bank | |
| TSB | |
| Yorkshire Building Society |
Retaining our service will provide you increased control over the value of your Littleport leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
David owned a high value flat in Littleport on the market with a lease of just over 61 years left. David on an informal basis approached his freeholder a well known London-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £125 annually. No ground rent would be due on a lease extension were David to exercise his statutory right. David obtained expert advice and secured an acceptable deal without resorting to tribunal and ending up with a market value flat.
In 2014 we were phoned by Dr Toby Scott who, having completed a one bedroom apartment in Littleport in June 2010. We are asked if we could estimate the premium would likely be to prolong the lease by a further 90 years. Similar homes in Littleport with 100 year plus lease were in the region of £295,000. The mid-range amount of ground rent was £50 billed per annum. The lease ended in 2101. Given that there were 75 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of expenses.
Mrs Millie Mitchell purchased a one bedroom apartment in Littleport in October 2010. The question was if we could estimate the compensation to the landlord would be to extend the lease by 90 years. Comparative premises in Littleport with an extended lease were worth £250,400. The mid-range amount of ground rent was £65 collected yearly. The lease expired in 2090. Taking into account 64 years left we approximated the premium to the freeholder to extend the lease to be between £19,000 and £22,000 not including expenses.