It’s a harsh certainty that a Market Bosworth residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Market Bosworth property prices.Once your lease gets to 85ish years, you need to start thinking about a lease extension. If lease term dips below eighty years, you will end up paying half of the property's 'marriage value' on top of 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 Market Bosworth will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether 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 is initiated and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Coventry Building Society | |
| Godiva Mortgages | |
| Leeds Building Society | |
| National Westminster Bank |
The conveyancing solicitors that we work with undertake Market Bosworth 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 lawyer we work with provide it.
Last October Evan, came seriously near to the 80-year threshold with the lease on his garden apartment in Market Bosworth. Having bought his flat two decades ago, the unexpired term was of little bearing. Luckily, he became aware that he would imminently be paying way over the odds for Extending the lease. Evan was able to extend his lease just under the wire in June. Evan and the landlord who owned the flat above eventually settled on sum of £5,500 . If the lease had dipped below eighty years, the amount would have become more exhorbitant by a minimum £975.
Last Christmas we were contacted by Mr Max Michel , who completed a garden apartment in Market Bosworth in June 1996. The question was if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year extension to my lease. Comparative residencies in Market Bosworth with 100 year plus lease were valued about £206,200. The average amount of ground rent was £60 collected every twelve months. The lease lapsed in 2082. Having 56 years unexpired we estimated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 plus fees.
In 2010 we were phoned by Mr and Mrs. S Campbell who, having bought a basement apartment in Market Bosworth in November 1997. We are asked if we could shed any light on how much (roughly) premium would likely be to extend the lease by ninety years. Comparable homes in Market Bosworth with 100 year plus lease were worth £300,000. The average ground rent payable was £50 collected per annum. The lease expired on 9 October 2102. Considering the 76 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 plus costs.