There is no doubt about it a leasehold property in Polesworth is a wasting asset as a result of the shortening lease. Where the residual term has, in excess of 99 years to run then this decrease may be fractional nevertheless there will become a point in time when a lease has less than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should consider extending without delay. The majority of flat owners in Polesworth will qualify for this right; however a lawyer can confirm if you are eligible to extend your lease. 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.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Irrespective of whether you are a tenant or a freeholder in Polesworth,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Polesworth valuers.
After lengthy discussions with the freeholder of her studio apartment in Polesworth, Mia started the lease extension process as the 80 year threshold was fast coming. The legal work completed in April 2014. The landlord’s costs were kept to an absolute minimum.
Last year we were e-mailed by Mr S Wright , who was assigned a lease of a purpose-built apartment in Polesworth in February 2009. We are asked if we could estimate the price would be for a ninety year lease extension. Similar properties in Polesworth with a long lease were worth £295,000. The average amount of ground rent was £45 collected annually. The lease expired in 2099. Having 74 years left we calculated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 not including expenses.
Mr D Rivera owned a one bedroom apartment in Polesworth in May 2010. The question was if we could estimate the price would likely be to prolong the lease by a further 90 years. Comparative properties in Polesworth with an extended lease were valued around £243,000. The average amount of ground rent was £65 invoiced per annum. The lease elapsed in 2088. Taking into account 63 years unexpired we approximated the premium to the freeholder to extend the lease to be within £20,000 and £23,000 exclusive of costs.