Red Lodge leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Most owners of residential leasehold property in Red Lodge enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Red Lodge you would be well advised to see if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under 80 years, the cost of any lease extension sharply increases as part of the premium you pay is what is known as a marriage value
Leasehold premises in Red Lodge with in excess of 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| Chelsea Building Society | |
| Nationwide Building Society | |
| Royal Bank of Scotland |
Retaining our service will provide you increased control over the value of your Red Lodge leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Henry was the the leasehold proprietor of a conversion apartment in Red Lodge on the market with a lease of fraction over 59 years remaining. Henry on an informal basis approached his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Henry to invoke his statutory right. Henry procured expert advice and was able to make a more informed judgement and deal with the matter and readily saleable.
In 2011 we were approached by Mr and Mrs. L Wood who, having was assigned a lease of a garden flat in Red Lodge in May 2004. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Similar homes in Red Lodge with 100 year plus lease were in the region of £225,800. The average amount of ground rent was £60 invoiced every twelve months. The lease terminated in 2086. Having 60 years unexpired we approximated the premium to the freeholder for the lease extension to be within £24,700 and £28,600 not including costs.
Last month we were e-mailed by Mrs Bethany Smith , who bought a one bedroom flat in Red Lodge in November 2001. We are asked if we could estimate the premium would be to prolong the lease by ninety years. Similar residencies in Red Lodge with 100 year plus lease were valued around £210,000. The average ground rent payable was £50 collected every twelve months. The lease ended in 2106. Taking into account 80 years left we estimated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of fees.