When it comes to long leasehold property in Rubery, you effectively rent it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may consider extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably when there are less than 80 years remaining. Residents in Rubery with a lease approaching 81 years unexpired should seriously think of extending it sooner as opposed to later. When the lease term has below eighty years left, under the relevant statute the freeholder is entitled to calculate and levy a greater amount, based on a technical calculation, known as “marriage value” which is payable.
Leasehold premises in Rubery with in excess of 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Coventry Building Society | |
| TSB | |
| Royal Bank of Scotland | |
| Virgin |
Retaining our service will provide you better control over the value of your Rubery leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Alexander, started to get close to the 80-year threshold with the lease on his studio apartment in Rubery. In buying his property 19 years ago, the unexpired term was of minimal concern. by good luck, he recognised he would soon be paying an inflated amount for a lease extension. Alexander was able to extend his lease just ahead of time last June. Alexander and the landlord in the end settled on sum of £5,500 . If he failed to meet the deadline, the price would have become more exhorbitant by at least £1,075.
In 2009 we were approached by Ms Rachel Stewart who, having was assigned a lease of a one bedroom flat in Rubery in April 2012. The question was if we could approximate the premium could be to extend the lease by a further 90 years. Comparable flats in Rubery with a long lease were valued about £205,000. The mid-range ground rent payable was £50 invoiced monthly. The lease concluded on 21 April 2105. Considering the 79 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 plus legals.
In 2010 we were contacted by Mr and Mrs. D Ward who, having moved into a one bedroom apartment in Rubery in July 2007. The question was if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by a further 90 years. Similar premises in Rubery with an extended lease were valued about £275,000. The mid-range amount of ground rent was £65 invoiced yearly. The lease concluded in 2094. Given that there were 68 years outstanding we estimated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of fees.