Old St Mellons 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 becomes more expensive. It is the case that most Old St Mellons tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Old St Mellons you really ought to see if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under 80 years, the cost of any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
It is conventional wisdom that a property 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 35 years unexpired, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Birmingham Midshires | |
| Halifax | |
| National Westminster Bank | |
| TSB |
The lawyers that we work with procure Old St Mellons 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 conveyancer we work with provide it.
Subsequent to unsuccessful discussions with the freeholder of her studio apartment in Old St Mellons, Jasmine commenced the lease extension process just as the lease was coming close to the critical eighty-year mark. The lease extension was concluded in August 2015. The freeholder’s fees were negotiated to less than 650 pounds.
Mr Austin Clark owned a one bedroom flat in Old St Mellons in November 2004. The dilemma was if we could estimate the price would likely be for a 90 year extension to my lease. Comparable residencies in Old St Mellons with 100 year plus lease were valued around £216,000. The mid-range ground rent payable was £60 invoiced monthly. The lease came to a finish in 2084. Considering the 58 years remaining we calculated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 not including fees.
Mr O Wood purchased a first floor apartment in Old St Mellons in January 2003. We are asked if we could shed any light on how much (roughly) price would be to prolong the lease by 90 years. Comparative properties in Old St Mellons with 100 year plus lease were worth £205,000. The mid-range amount of ground rent was £50 collected annually. The lease terminated on 6 August 2104. Taking into account 78 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £7,600 and £8,800 not including legals.