There is no doubt about it a leasehold flat or house in Redland is a wasting asset as a result of the diminishing lease term. Where the residual term has, over 100 years remaining then this decrease may be of little impact nevertheless there will become a point in time when a lease has fewer than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main logic behind why you should consider extending sooner as opposed to later. The majority of flat owners in Redland will qualify for this right; however a lawyer should be able to confirm whether you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barclays plc | |
| Birmingham Midshires | |
| Coventry Building Society | |
| Godiva Mortgages |
Using our service gives you enhanced control over the value of your Redland 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 have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 6 months of protracted discussions with the landlord of her basement flat in Redland, Mollie initiated the lease extension process just as her lease was coming close to the crucial 80-year deadline. The legal work was finalised in June 2012. The landlord’s fees were restricted to below 500 GBP.
In 2014 we were approached by Mr A Bailey who, having took over the lease of a ground floor flat in Redland in March 1996. The question was if we could estimate the price would be to prolong the lease by 90 years. Comparative properties in Redland with 100 year plus lease were valued around £245,000. The average ground rent payable was £50 collected yearly. The lease lapsed on 22 March 2094. Considering the 68 years remaining we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including expenses.
Dr Jackson Phillips acquired a garden apartment in Redland in April 2012. The question was if we could approximate the compensation to the landlord could be for a ninety year lease extension. Comparative residencies in Redland with 100 year plus lease were in the region of £285,000. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease ran out in 2105. Considering the 79 years remaining we estimated the premium to the landlord for the lease extension to be within £13,300 and £15,400 not including professional charges.