Unfortunately that a Redditch residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Redditch property market.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. If the number of years remaining dips below eighty years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of flat owners in Redditch will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you qualify for an extension. In some cases you may not qualify. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the formalities.
Leasehold residencies in Redditch with over one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | |
| Coventry Building Society | |
| National Westminster Bank | |
| Santander | |
| The Mortgage Works |
Using our service will provide you better control over the value of your Redditch leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Freddie owned a 2 bedroom apartment in Redditch being marketed with a lease of a little over fifty eight years unexpired. Freddie on an informal basis approached his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 per annum. No ground rent would be payable on a lease extension were Freddie to exercise his statutory right. Freddie procured expert advice and secured an acceptable deal without going to tribunal and sell the property.
Last Spring we were e-mailed by Dr M Clarke , who bought a recently refurbished apartment in Redditch in February 2004. The question was if we could shed any light on how much (approximately) price would likely be to prolong the lease by 90 years. Identical homes in Redditch with an extended lease were worth £223,400. The mid-range ground rent payable was £60 invoiced annually. The lease expiry date was on 8 August 2085. Given that there were 59 years outstanding we estimated the compensation to the landlord to extend the lease to be between £27,600 and £31,800 exclusive of professional charges.
In 2014 we were phoned by Mr and Mrs. S Simon who, having took over the lease of a one bedroom flat in Redditch in July 2011. The question was if we could estimate the price could be for a 90 year extension to my lease. Identical premises in Redditch with 100 year plus lease were worth £205,000. The mid-range amount of ground rent was £50 billed annually. The lease came to a finish on 24 October 2105. Given that there were 79 years remaining we estimated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 plus legals.