Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will usually be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Queenborough. Clearly, the term of lease left reduces as time goes by. This may pass by relatively unnoticed when the property needs to be disposed of or re-mortgaged. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease. Qualifying long lease owners in Queenborough have the legal entitlement to extend the lease for a further 90 years in accordance with Leasehold Reform legislation. Please give due attention before putting off your Queenborough lease extension. Holding off the cost now simply increases the price you will ultimately have to pay for a lease extension
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | |
| Godiva Mortgages | |
| Halifax | |
| Nationwide Building Society | |
| Royal Bank of Scotland |
Using our service gives you enhanced control over the value of your Queenborough leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Eli owned a high value apartment in Queenborough being sold with a lease of a little over sixty years remaining. Eli on an informal basis approached his landlord a well known local-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 yearly. Ordinarily, ground rent would not be due on a lease extension were Eli to exercise his statutory right. Eli obtained expert legal guidance and secured satisfactory deal informally and sell the flat.
Dr Gabriel King bought a basement flat in Queenborough in June 2008. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by a further 90 years. Comparative homes in Queenborough with 100 year plus lease were in the region of £260,200. The average ground rent payable was £65 collected quarterly. The lease ran out in 2092. Given that there were 66 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £16,200 and £18,600 exclusive of costs.
Last year we were phoned by Mr L Brown , who moved into a purpose-built flat in Queenborough in July 2011. The question was if we could approximate the premium could be for a ninety year extension to my lease. Comparative flats in Queenborough with 100 year plus lease were valued about £198,800. The mid-range amount of ground rent was £55 collected quarterly. The lease ended on 19 October 2081. Taking into account 55 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £33,300 and £38,400 plus expenses.