Needham Market leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. It is the case that most Needham Market tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Needham Market you must investigate if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under 80 years, the cost of any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Birmingham Midshires | |
| Halifax | |
| Royal Bank of Scotland | |
| Virgin |
Regardless of whether you are a tenant or a freeholder in Needham Market,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Needham Market valuers.
In the wake of eight months of lengthy negotiations with the landlord of her studio flat in Needham Market, Bethan started the lease extension process as the eighty year threshold was swiftly coming. The transaction completed in June 2015. The freeholder’s fees were kept to an absolute minimum.
Last Winter we were phoned by Mr and Mrs. I Edwards , who took over the lease of a one bedroom apartment in Needham Market in August 1999. The question was if we could shed any light on how much (roughly) price could be for a ninety year extension to my lease. Similar flats in Needham Market with 100 year plus lease were valued about £181,600. The mid-range amount of ground rent was £55 invoiced quarterly. The lease terminated in 2078. Having 52 years left we estimated the compensation to the landlord to extend the lease to be between £30,400 and £35,200 exclusive of costs.
Last Winter we were approach by Mr and Mrs. N Garcia , who bought a ground floor apartment in Needham Market in February 2012. We are asked if we could shed any light on how much (approximately) premium would likely be to extend the lease by ninety years. Identical properties in Needham Market with a long lease were in the region of £290,000. The mid-range amount of ground rent was £45 invoiced yearly. The lease ended on 19 July 2098. Taking into account 72 years remaining we estimated the compensation to the freeholder for the lease extension to be within £11,400 and £13,200 plus expenses.