It’s an underpublicised certainty that a Lound residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Lound property market.Where your lease has approximately ninety years left, you need to start considering 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 under 80 years - otherwise a higher premium will be payable. Most flat owners in Lound will be able to extend under the legislation; however a conveyancer will be able to clarify if you qualify for an extension. In some situations 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 lawyer for the duration of the formalities.
Leasehold residencies in Lound with in excess of one hundred 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 home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barclays plc | |
| Barnsley Building Society | |
| TSB | |
| Royal Bank of Scotland |
Retaining our service will provide you increased control over the value of your Lound leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Blake was the the leasehold owner of a 2 bedroom apartment in Lound on the market with a lease of a few days over 61 years unexpired. Blake informally approached his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £50 per annum. Ordinarily, ground rent would not be payable on a lease extension were Blake to invoke his statutory right. Blake obtained expert legal guidance and secured an acceptable resolution informally and ending up with a market value flat.
Last Spring we were contacted by Mr and Mrs. U Adams , who purchased a one bedroom flat in Lound in May 2007. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Comparable flats in Lound with 100 year plus lease were worth £237,600. The mid-range ground rent payable was £45 collected monthly. The lease end date was in 2093. Given that there were 67 years remaining we approximated the premium to the landlord to extend the lease to be between £11,400 and £13,200 exclusive of legals.
In 2014 we were called by Mr T Moore who, having bought a first floor flat in Lound in May 2010. The dilemma was if we could approximate the compensation to the landlord could be to extend the lease by ninety years. Comparative flats in Lound with 100 year plus lease were in the region of £280,000. The mid-range amount of ground rent was £55 collected yearly. The lease lapsed in 2104. Considering the 78 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of fees.