Unfortunately that a North End residential lease is a wasting 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 loss of value being disguised by increases in the North End property market.Where your lease has approximately 90 years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips below 80 years - otherwise a higher amount will be due. The majority of flat owners in North End will be able to extend under the legislation; however a lawyer should be able to confirm whether you are eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to follow once the process is initiated and you will need to be guided by your conveyancer from beginning to end of the process.
It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Chelsea Building Society | |
| Royal Bank of Scotland | |
| Virgin | |
| Yorkshire Building Society |
Irrespective of whether you are a tenant or a freeholder in North End,the lease extension lawyers 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 North End valuers.
Following unsuccessful correspondence with the freeholder of her ground floor apartment in North End, Paige started the lease extension process as the eighty year deadline was swiftly nearing. The transaction was concluded in June 2005. The landlord’s charges were kept to an absolute minimum.
In 2009 we were e-mailed by Mr and Mrs. P Gómez who, having owned a ground floor flat in North End in April 2012. We are asked if we could shed any light on how much (roughly) premium would likely be for a 90 year extension to my lease. Comparable properties in North End with an extended lease were worth £176,200. The average amount of ground rent was £65 invoiced every twelve months. The lease finished in 2082. Given that there were 56 years outstanding we estimated the premium to the freeholder to extend the lease to be between £29,500 and £34,000 exclusive of professional charges.
An example of a Lease Extension case for a North End premises is Various @ Colombus Square in January 2012. the Tribunal calculated the premiums to be paid for new leases for each of the flats in Mariners Walk to be £3822 and the premium to be paid for the new lease of 2 Knights Court to be £4439. This case affected 13 flats. The number of years remaining on the existing lease(s) was 76 years.