As the the remaining lease term of a Redcar residential lease lessens so does its value and therefore the value of your property. If the lease has, more than 100 years to run then this decrease may be of little impact however there will become a point in time when a lease has fewer than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary reason why you should consider extending without delay. Most flat owners in Redcar will meet the qualifying criteria; however a lawyer can advise whether you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | |
| Coventry Building Society | |
| Godiva Mortgages | |
| The Mortgage Works | |
| Virgin |
The conveyancing solicitors that we work with undertake Redcar lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Jake owned a high value flat in Redcar being marketed with a lease of a few days over 61 years outstanding. Jake informally contacted his freeholder a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Jake to invoke his statutory right. Jake obtained expert advice and was able to make an informed judgement and deal with the matter and sell the property.
Last Christmas we were approach by Mrs N Kelly , who acquired a one bedroom apartment in Redcar in March 2001. The question was if we could shed any light on how much (roughly) premium would be to extend the lease by 90 years. Comparable properties in Redcar with a long lease were in the region of £176,200. The average amount of ground rent was £65 invoiced yearly. The lease expired on 14 September 2082. Considering the 56 years left we estimated the premium to the freeholder for the lease extension to be between £29,500 and £34,000 plus fees.
In 2012 we were e-mailed by Mr J David who, having took over the lease of a one bedroom flat in Redcar in October 2001. The dilemma was if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Identical properties in Redcar with an extended lease were in the region of £237,600. The mid-range amount of ground rent was £45 collected yearly. The lease expiry date was in 2093. Taking into account 67 years unexpired we calculated the premium to the landlord to extend the lease to be within £11,400 and £13,200 not including costs.