As the length of the unexpired term of a Openshaw residential lease diminished so does its value and therefore the value of your property. If the lease has, over 125 years to run then this decrease may be negligible however there will become a stage when a lease has less than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should consider extending sooner rather than later. Most flat owners in Openshaw will qualify for this right; that being said a lawyer can advise whether you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold residencies in Openshaw with in excess of one hundred years remaining on the lease are sometimes regarded as a ‘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 to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Leeds Building Society | |
| National Westminster Bank | |
| Santander | |
| The Mortgage Works | |
| Yorkshire Building Society |
Regardless of whether you are a tenant or a landlord in Openshaw,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Openshaw valuers.
Connor was the the leasehold proprietor of a 2 bedroom flat in Openshaw being sold with a lease of a little over fifty eight years left. Connor informally contacted his freeholder a well known London-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Connor to exercise his statutory right. Connor obtained expert advice and secured satisfactory deal informally and ending up with a market value flat.
Ms Kirsty Wood moved into a studio apartment in Openshaw in June 2003. The dilemma was if we could approximate the compensation to the landlord would be for a ninety year lease extension. Comparable properties in Openshaw with an extended lease were worth £206,200. The average ground rent payable was £60 invoiced quarterly. The lease lapsed in 2082. Given that there were 56 years left we calculated the compensation to the landlord for the lease extension to be within £32,300 and £37,400 exclusive of costs.
In 2014 we were called by Dr S Johnson who, having took over the lease of a garden flat in Openshaw in June 2006. The question was if we could approximate the compensation to the landlord would be for a 90 year lease extension. Comparative flats in Openshaw with an extended lease were valued about £300,000. The average ground rent payable was £50 collected per annum. The lease ran out in 2102. Taking into account 76 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 plus fees.