There is no doubt about it a leasehold property in Middleton is a wasting asset as a result of the diminishing lease term. If the lease has, over one hundred years to run then this decrease may be fractional that being said there will become a point in time when a lease has less than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should consider extending without delay. Most flat owners in Middleton will qualify for this right; however a lawyer will be able to confirm whether you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold premises in Middleton with over 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Birmingham Midshires | |
| Chelsea Building Society | |
| National Westminster Bank | |
| TSB |
The conveyancers that we work with procure Middleton 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 conveyancer we work with provide it.
In recent months Felix, came precariously near to the eighty-year mark with the lease on his garden apartment in Middleton. In buying his flat two decades ago, the lease term was of little concern. Luckily, he realised he would imminently be paying an inflated amount for Extending the lease. Felix arranged for a lease extension just ahead of time in March. Felix and the landlord ultimately agreed on the final figure of £5,500 . If he failed to meet the deadline, the premium would have gone up by at least £1,075.
Last Autumn we were called by Dr L Martin , who bought a one bedroom apartment in Middleton in January 2001. The dilemma was if we could estimate the price could be to extend the lease by 90 years. Identical homes in Middleton with a long lease were worth £235,200. The mid-range ground rent payable was £45 collected annually. The lease concluded on 12 March 2092. Taking into account 66 years left we approximated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 not including legals.
In 2012 we were called by Mrs W Lee who, having bought a purpose-built flat in Middleton in February 2007. The question was if we could shed any light on how much (roughly) price would likely be for a 90 year lease extension. Comparative flats in Middleton with an extended lease were valued about £275,000. The mid-range ground rent payable was £55 collected yearly. The lease expired in 2103. Having 77 years unexpired we calculated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of fees.