The nearer a residential lease in Ludlow nears to zero years unexpired, the more it reduces the value of the property. Where the residual term has, over one hundred years to run then this decrease may be of little impact nevertheless there will become a point in time when a lease has fewer than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary reason why you should consider extending without delay. The majority of flat owners in Ludlow will qualify for this right; however a lawyer can confirm if you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| Halifax | |
| TSB | |
| The Mortgage Works |
Retaining our service gives you enhanced control over the value of your Ludlow leasehold, as your property will be more valuable and saleable in terms of 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.
Last year Sam, started to get close to the 80-year threshold with the lease on his first floor apartment in Ludlow. In buying his flat two decades ago, the unexpired term was of minimal interest. Thankfully, he became aware that he would soon be paying an inflated amount for Extending the lease. Sam was able to extend his lease at the eleventh hour in January. Sam and the freeholder subsequently settled on an amount of £5,000 . If he failed to meet the deadline, the figure would have gone up by at least £1,050.
Mr and Mrs. T André acquired a one bedroom flat in Ludlow in February 1996. We are asked if we could shed any light on how much (roughly) premium could be for a ninety year extension to my lease. Identical homes in Ludlow with a long lease were in the region of £267,600. The average amount of ground rent was £65 collected quarterly. The lease expired on 8 August 2093. Taking into account 67 years remaining we calculated the premium to the freeholder to extend the lease to be within £14,300 and £16,400 plus legals.
In 2009 we were called by Mrs Victoria Jackson who, having acquired a one bedroom flat in Ludlow in July 2001. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparable flats in Ludlow with 100 year plus lease were valued around £201,200. The mid-range amount of ground rent was £55 billed per annum. The lease elapsed on 23 March 2082. Taking into account 56 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 exclusive of fees.