Redfield leases on residential properties are gradually losing value. Where your lease has about ninety years unexpired, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease falls below this level then you start incurring an additional element called marriage value. Leasehold owners in Redfield will mostly qualify for a lease extension; however a solicitor should be able confirm your eligibility. In some cases you may not qualify. There are also strict timetables and formalities to comply with once the process is triggered so it’s best to be guided by a lawyer during the process.
It is generally accepted that a property with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| Godiva Mortgages | |
| TSB | |
| Yorkshire Building Society |
Regardless of whether you are a tenant or a freeholder in Redfield,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Redfield valuers.
Milo owned a 2 bedroom flat in Redfield being marketed with a lease of a few days over sixty years remaining. Milo on an informal basis spoke with his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 per annum. Ordinarily, ground rent would not be payable on a lease extension were Milo to invoke his statutory right. Milo procured expert legal guidance and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
Mr and Mrs. H Thomas acquired a studio apartment in Redfield in August 1997. We are asked if we could approximate the premium would likely be for a ninety year extension to my lease. Comparable homes in Redfield with a long lease were worth £210,600. The mid-range ground rent payable was £45 billed annually. The lease lapsed in 2088. Having 62 years unexpired we approximated the premium to the landlord to extend the lease to be within £18,100 and £20,800 exclusive of legals.
In 2014 we were phoned by Dr H Moore who, having purchased a recently refurbished flat in Redfield in March 2006. The question was if we could approximate the compensation to the landlord could be to prolong the lease by a further 90 years. Comparative premises in Redfield with 100 year plus lease were valued about £265,000. The mid-range amount of ground rent was £50 collected every twelve months. The lease elapsed on 25 September 2099. Given that there were 73 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus legals.