Unfortunately that a Oldland residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Oldland property prices.Once your lease nears 85ish years, you need to start thinking about 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 under eighty years - otherwise a higher premium will be payable. The majority of leasehold owners in Oldland will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you qualify for an extension. In some cases you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancing solicitor throughout the formalities.
It is conventional wisdom that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| National Westminster Bank | |
| TSB | |
| The Mortgage Works | |
| Virgin |
The conveyancers that we work with undertake 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 conveyancing solicitor we work with provide it.
In the wake of eight months of protracted discussions with the freeholder of her studio flat in Oldland, Rachel started the lease extension process just as her lease was nearing the critical 80-year deadline. The legal work was concluded in November 2014. The freeholder’s fees were kept to an absolute minimum.
Dr Reuben Edwards acquired a one bedroom apartment in Oldland in February 2008. The dilemma was if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Comparable flats in Oldland with a long lease were worth £200,000. The average ground rent payable was £50 invoiced quarterly. The lease expired in 2104. Having 78 years left we approximated the premium to the landlord for the lease extension to be within £8,600 and £9,800 plus professional charges.
Mr and Mrs. S François acquired a one bedroom flat in Oldland in January 1997. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparative residencies in Oldland with an extended lease were in the region of £267,600. The average amount of ground rent was £65 billed yearly. The lease elapsed on 27 April 2093. Considering the 67 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £14,300 and £16,400 not including fees.