Oldland leases on domestic properties are gradually losing value. if your lease has approximately ninety years left, you should start considering the need for a lease extension. If lease term dips under 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Oldland will usually be legally entitled to a lease extension; however a solicitor will check your eligibility. In some cases you may not qualify. There are prescribed deadlines and procedures to follow once the process has commenced so it’s wise to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Oldland with more than 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Chelsea Building Society | |
| Godiva Mortgages | |
| National Westminster Bank | |
| Skipton Building Society |
The lawyers that we work with procure Oldland 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 lawyer we work with provide it.
Last Winter Finley, started to get close to the eighty-year mark with the lease on his one bedroom apartment in Oldland. Having purchased his home two decades ago, the unexpired term was of little interest. As luck would have it, he noticed he needed to take steps soon on Extending the lease. Finley arranged for a lease extension just ahead of time in July. Finley and the landlord who owned the flat above eventually agreed on sum of £6,000 . If the lease had descended lower than eighty years, the premium would have become more exhorbitant by a minimum £1,075.
Last June we were e-mailed by Mr Leon Martínez , who acquired a recently refurbished apartment in Oldland in April 2004. The question was if we could approximate the premium would be for a ninety year extension to my lease. Comparative residencies in Oldland with a long lease were worth £295,000. The mid-range amount of ground rent was £45 collected monthly. The lease elapsed on 25 October 2100. Considering the 74 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus costs.
In 2013 we were e-mailed by Mr H André who, having owned a studio apartment in Oldland in September 2010. We are asked if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Comparable premises in Oldland with a long lease were in the region of £243,000. The average ground rent payable was £65 invoiced every twelve months. The lease expiry date was on 11 June 2089. Having 63 years outstanding we estimated the premium to the freeholder for the lease extension to be between £20,000 and £23,000 exclusive of professional charges.