As the length of the unexpired term of a New Forest domestic lease diminished so does its value and therefore the value of your property. If the residual term has, more than one hundred years remaining then this decrease may be fractional nevertheless there will become a stage when a lease has under than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should consider extending without delay. Many flat owners in New Forest will qualify for this right; that being said a conveyancer can advise if 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.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 45 years left, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Birmingham Midshires | |
| National Westminster Bank | |
| Skipton Building Society | |
| TSB |
The lawyers that we work with undertake New Forest 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 conveyancing solicitor we work with provide it.
Jack was the the leasehold owner of a conversion flat in New Forest on the market with a lease of fraction over 59 years unexpired. Jack informally contacted his freeholder a well known Bristol-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Jack to invoke his statutory right. Jack obtained expert advice and was able to make an informed decision and handle with the matter and readily saleable.
Last Spring we were approach by Dr Megan Martin , who moved into a studio apartment in New Forest in May 2004. We are asked if we could shed any light on how much (approximately) premium could be to prolong the lease by an additional years. Comparative properties in New Forest with an extended lease were worth £264,000. The average ground rent payable was £60 invoiced quarterly. The lease elapsed in 2079. Having 53 years as a residual term we approximated the premium to the landlord to extend the lease to be within £37,100 and £42,800 not including fees.
Mr and Mrs. T Williams moved into a purpose-built apartment in New Forest in May 2007. The dilemma was if we could approximate the price could be for a 90 year extension to my lease. Similar homes in New Forest with a long lease were worth £220,400. The mid-range ground rent payable was £45 collected per annum. The lease finished on 12 July 2090. Having 64 years left we calculated the compensation to the freeholder to extend the lease to be within £15,200 and £17,600 plus legals.