As the the remaining lease term of a New Invention residential lease decreases so does its value and therefore the value of your property. Where the lease has, more than 99 years to run then this decrease may be fractional however there will become a stage when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary logic behind why you should extend the lease sooner as opposed to later. Many flat owners in New Invention will meet the qualifying criteria; however a conveyancer should be able to advise whether you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Coventry Building Society | |
| Godiva Mortgages | |
| Leeds Building Society | |
| Skipton Building Society | |
| Royal Bank of Scotland |
The lawyers that we work with handle New Invention 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.
Charlie was the the leasehold owner of a conversion apartment in New Invention on the market with a lease of just over sixty years unexpired. Charlie informally contacted his landlord being a well known London-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 yearly. No ground rent would be due on a lease extension were Charlie to invoke his statutory right. Charlie procured expert legal guidance and secured an acceptable deal without resorting to tribunal and sell the property.
In 2012 we were contacted by Mr Benjamin García who, having moved into a studio flat in New Invention in January 1996. We are asked if we could approximate the premium would likely be to prolong the lease by an additional years. Comparative properties in New Invention with an extended lease were in the region of £171,800. The average ground rent payable was £55 billed quarterly. The lease came to a finish in 2076. Taking into account 50 years as a residual term we estimated the premium to the landlord to extend the lease to be within £33,300 and £38,400 plus costs.
Ms F Gunderson took over the lease of a one bedroom flat in New Invention in February 1999. We are asked if we could approximate the price would likely be for a ninety year lease extension. Comparable properties in New Invention with a long lease were in the region of £280,000. The mid-range amount of ground rent was £45 invoiced yearly. The lease ran out on 24 January 2097. Having 71 years as a residual term we approximated the premium to the landlord for the lease extension to be between £12,400 and £14,200 plus fees.