The basic rule is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Machen have the legal entitlement to extend the lease for a further ninety years in accordance with Leasehold Reform legislation. Do give careful consideration before delaying your Machen lease extension. Putting off the costs now simply increases the price you will ultimately have to pay to extend the lease.
It is generally considered that a property with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barclays plc | |
| Birmingham Midshires | |
| Skipton Building Society | |
| The Mortgage Works |
Regardless of whether you are a tenant or a freeholder in Machen,the lease extension experts 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 Machen valuers.
Off the back of lengthy negotiations with the freeholder of her leasehold apartment in Machen, Jennifer started the lease extension process just as the lease was coming close to the crucial eighty-year threshold. The legal work was finalised in April 2008. The freeholder’s charges were negotiated to under 450 GBP.
Last Autumn we were phoned by Mr Leo Cook , who took over the lease of a one bedroom apartment in Machen in June 2007. We are asked if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Identical homes in Machen with a long lease were worth £216,000. The average amount of ground rent was £60 invoiced every twelve months. The lease end date was on 10 July 2084. Taking into account 58 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 exclusive of costs.
In 2010 we were called by Dr K King who, having completed a first floor flat in Machen in July 1999. The question was if we could estimate the price would likely be for a 90 year lease extension. Comparable flats in Machen with 100 year plus lease were valued around £205,000. The average amount of ground rent was £50 billed monthly. The lease lapsed on 12 April 2104. Considering the 78 years left we approximated the premium to the freeholder to extend the lease to be between £7,600 and £8,800 not including professional charges.