It’s an underpublicised certainty that a Longridge residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Longridge property prices.Once your lease gets to 85ish years, you should start considering a lease extension. If lease term drops below 80 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. Marriage value is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Longridge will be able to extend under the legislation; however a lawyer should be able to clarify whether you are eligibility. In some cases you may not qualify. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
Leasehold premises in Longridge with in excess of one hundred years unexpired 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 situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Chelsea Building Society | |
| Halifax | |
| Leeds Building Society | |
| Nationwide Building Society |
The conveyancers that we work with undertake Longridge 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.
Finley was the the leasehold proprietor of a 2 bedroom flat in Longridge being marketed with a lease of fraction over 61 years left. Finley informally spoke with his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Finley to exercise his statutory right. Finley procured expert advice and was able to make a more informed judgement and handle with the matter and sell the flat.
In 2013 we were approached by Dr S Green who, having bought a garden apartment in Longridge in June 2009. We are asked if we could estimate the price would likely be for a 90 year extension to my lease. Similar homes in Longridge with 100 year plus lease were valued about £280,000. The mid-range ground rent payable was £45 invoiced yearly. The lease concluded on 18 January 2096. Given that there were 70 years remaining we estimated the premium to the landlord to extend the lease to be within £12,400 and £14,200 not including legals.
Last month we were contacted by Dr W Taylor , who moved into a one bedroom flat in Longridge in March 2011. We are asked if we could approximate the price could be for a 90 year lease extension. Comparative properties in Longridge with 100 year plus lease were in the region of £223,400. The mid-range ground rent payable was £60 collected quarterly. The lease terminated in 2085. Having 59 years remaining we estimated the compensation to the landlord to extend the lease to be within £27,600 and £31,800 not including costs.