Unfortunately that a Polesworth residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Polesworth property market.Where your lease has approximately ninety years left, you should start thinking about a lease extension. If the number of years remaining drops under 80 years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Polesworth will be able to extend under the legislation; however a conveyancer will be able to confirm if you are eligibility. In some situations you may not qualify. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer throughout the formalities.
It is generally considered that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Leeds Building Society | |
| National Westminster Bank | |
| Santander | |
| TSB | |
| The Mortgage Works |
Using our service gives you increased control over the value of your Polesworth leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of protracted correspondence with the landlord of her first floor flat in Polesworth, Hannah started the lease extension process as the 80 year deadline was fast nearing. The legal work was concluded in July 2005. The freeholder’s costs were restricted to approximately five hundred GBP.
Last year we were called by Dr N Mitchell , who was assigned a lease of a one bedroom flat in Polesworth in April 1995. We are asked if we could shed any light on how much (roughly) premium would likely be for a 90 year extension to my lease. Similar flats in Polesworth with a long lease were in the region of £257,800. The average amount of ground rent was £65 invoiced quarterly. The lease finished in 2091. Given that there were 65 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £17,100 and £19,800 plus fees.
Mr and Mrs. T Girard acquired a garden apartment in Polesworth in February 1995. The question was if we could approximate the compensation to the landlord could be for a ninety year lease extension. Similar residencies in Polesworth with 100 year plus lease were valued about £191,400. The average ground rent payable was £55 collected every twelve months. The lease elapsed in 2080. Given that there were 54 years unexpired we estimated the premium to the freeholder for the lease extension to be between £34,200 and £39,600 not including legals.