Unfortunately that a Market Deeping residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Market Deeping property prices.Where your lease has approximately ninety years left, you should start thinking about a lease extension. If lease term slips under 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 Most leasehold owners in Market Deeping will be able to extend under the legislation; however a conveyancer will be able to clarify if you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer throughout the process.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Coventry Building Society | |
| TSB | |
| The Mortgage Works | |
| Yorkshire Building Society |
Regardless of whether you are a tenant or a landlord in Market Deeping,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Market Deeping valuers.
Matthew owned a high value flat in Market Deeping being marketed with a lease of a few days over 61 years left. Matthew informally spoke with his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Matthew to exercise his statutory right. Matthew procured expert advice and secured an acceptable resolution informally and ending up with a market value flat.
Last Spring we were approach by Mr Aaron Stewart , who acquired a basement apartment in Market Deeping in October 2000. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparative homes in Market Deeping with an extended lease were worth £280,000. The average ground rent payable was £45 invoiced every twelve months. The lease ended in 2097. Having 71 years as a residual term we estimated the premium to the landlord to extend the lease to be between £12,400 and £14,200 plus legals.
Last Summer we were approach by Mr and Mrs. G Bernard , who completed a recently refurbished apartment in Market Deeping in March 2011. The question was if we could estimate the compensation to the landlord would be for a 90 year lease extension. Similar properties in Market Deeping with 100 year plus lease were in the region of £225,800. The average ground rent payable was £60 invoiced monthly. The lease ended on 27 May 2086. Considering the 60 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £25,700 and £29,600 not including legals.