There is no doubt about it a leasehold property in Perton is a wasting asset as a result of the diminishing lease term. Where the residual term has, in excess of 125 years to run then this decrease may be of little impact however there will become a stage when a lease has under than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main reason why you should consider extending sooner rather than later. The majority of flat owners in Perton will qualify for this right; however a conveyancer can confirm whether you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is generally considered that a property with over one hundred years remaining is worth approximately the same 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 |
|---|---|
| Bank of Scotland | |
| Barclays plc | |
| National Westminster Bank | |
| TSB | |
| Virgin |
The conveyancers that we work with handle Perton 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.
After lengthy discussions with the freeholder of her first floor apartment in Perton, Zoe commenced the lease extension process just as the lease was coming close to the all-important eighty-year threshold. The legal work was finalised in September 2005. The freeholder’s fees were negotiated to under 450 GBP.
In 2014 we were contacted by Mr G Murphy who, having moved into a one bedroom flat in Perton in June 2001. The question was if we could approximate the premium would be to extend the lease by an additional years. Comparative flats in Perton with a long lease were in the region of £290,000. The mid-range ground rent payable was £45 invoiced quarterly. The lease ran out on 7 May 2099. Having 73 years as a residual term we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of legals.
Mr and Mrs. E Murphy owned a garden flat in Perton in April 1996. The dilemma was if we could estimate the premium could be for a ninety year extension to my lease. Similar residencies in Perton with 100 year plus lease were valued about £240,600. The mid-range ground rent payable was £60 invoiced per annum. The lease finished in 2088. Having 62 years unexpired we estimated the compensation to the landlord for the lease extension to be within £21,900 and £25,200 exclusive of professional charges.