Unfortunately that a Scotter residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Scotter property market.Once your lease nears 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under eighty years - otherwise a higher amount will be due. The majority of flat owners in Scotter will be able to extend under the legislation; however a lawyer will be able to confirm if you are eligibility. In some situations you may not qualify. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer throughout the process.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Halifax | |
| Leeds Building Society | |
| Nationwide Building Society | |
| Virgin |
The conveyancing solicitors that we work with handle Scotter 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 lawyer we work with provide it.
Kyle owned a studio apartment in Scotter being marketed with a lease of just over 61 years unexpired. Kyle on an informal basis spoke with his landlord a well known London-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 new rent initially set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Kyle to exercise his statutory right. Kyle procured expert advice and was able to make an informed decision and handle with the matter and readily saleable.
Last January we were contacted by Mr and Mrs. S Rogers , who bought a basement apartment in Scotter in September 1998. We are asked if we could shed any light on how much (roughly) price could be for a 90 year extension to my lease. Identical homes in Scotter with 100 year plus lease were worth £285,000. The mid-range amount of ground rent was £55 billed monthly. The lease end date was in 2106. Considering the 80 years remaining we estimated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 plus fees.
Last month we were contacted by Mr and Mrs. V Adams , who purchased a one bedroom apartment in Scotter in November 2002. We are asked if we could shed any light on how much (approximately) price would be for a 90 year extension to my lease. Comparable premises in Scotter with an extended lease were worth £200,800. The average ground rent payable was £65 billed yearly. The lease ended on 5 June 2086. Considering the 60 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £20,900 and £24,200 plus fees.