It’s a harsh certainty that a Old St Mellons residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Old St Mellons property market.Once your lease nears 85ish years, 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 premium will be payable. Most flat owners in Old St Mellons will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify if you qualify for an extension. In some cases you may not qualify. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer throughout the formalities.
It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Halifax | |
| The Mortgage Works | |
| Royal Bank of Scotland | |
| Virgin |
Regardless of whether you are a tenant or a landlord in Old St Mellons,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Old St Mellons valuers.
Edward owned a studio apartment in Old St Mellons on the market with a lease of fraction over sixty years unexpired. Edward informally contacted his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Edward to exercise his statutory right. Edward obtained expert advice and secured an acceptable deal informally and ending up with a market value flat.
Last Spring we were e-mailed by Mr F Leroy , who owned a studio flat in Old St Mellons in April 2005. The dilemma was if we could shed any light on how much (roughly) premium would be for a 90 year extension to my lease. Comparable premises in Old St Mellons with 100 year plus lease were valued about £280,000. The average ground rent payable was £45 invoiced quarterly. The lease expired in 2096. Taking into account 70 years outstanding we approximated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 plus legals.
Last Autumn we were approach by Ms Shannon Torres , who moved into a studio flat in Old St Mellons in February 2001. We are asked if we could shed any light on how much (approximately) price could be for a 90 year lease extension. Identical homes in Old St Mellons with a long lease were worth £223,400. The average ground rent payable was £60 billed monthly. The lease elapsed in 2085. Having 59 years left we calculated the compensation to the freeholder for the lease extension to be within £27,600 and £31,800 plus professional charges.