Unfortunately that a Purton residential lease is a wasting 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 reduction being disguised by increases in the Purton property prices.Where your lease has approximately 90 years left, you should start considering a lease extension. If the number of years remaining dips below eighty years, you will end up paying half 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 additional value that a lease extension will add the property Most flat owners in Purton will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you qualify for an extension. In some cases you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the process.
Leasehold properties in Purton with in excess of one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Chelsea Building Society | |
| Coventry Building Society | |
| Santander | |
| The Mortgage Works |
Engaging our service gives you enhanced control over the value of your Purton leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Logan owned a studio apartment in Purton on the market with a lease of just over fifty eight years unexpired. Logan informally contacted his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 yearly. No ground rent would be payable on a lease extension were Logan to invoke his statutory right. Logan procured expert advice and secured satisfactory deal informally and readily saleable.
In 2013 we were approached by Dr V Clarke who, having owned a ground floor flat in Purton in September 2011. We are asked if we could approximate the premium would likely be to prolong the lease by an additional years. Comparative properties in Purton with 100 year plus lease were in the region of £280,000. The average ground rent payable was £55 invoiced per annum. The lease termination date was in 2104. Considering the 78 years left we calculated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 plus legals.
In 2010 we were phoned by Ms Ashleigh Bennett who, having completed a garden flat in Purton in September 2002. We are asked if we could approximate the premium would likely be to prolong the lease by ninety years. Similar residencies in Purton with a long lease were valued around £186,000. The mid-range ground rent payable was £65 billed annually. The lease finished in 2084. Taking into account 58 years remaining we calculated the compensation to the landlord for the lease extension to be between £24,700 and £28,600 exclusive of costs.