As the length of the unexpired term of a Scunthorpe residential lease diminished so does its value and therefore the value of your property. Where the lease has, over 100 years to run then this decrease may be negligible nevertheless there will become a stage when a lease has fewer than 80 years left 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 rational as to why you should consider extending sooner as opposed to later. Most flat owners in Scunthorpe will meet the qualifying criteria; nevertheless a conveyancing solicitor can advise whether you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold premises in Scunthorpe with over one hundred years remaining 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 premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barnsley Building Society | |
| Coventry Building Society | |
| Santander | |
| The Mortgage Works |
Irrespective of whether you are a tenant or a freeholder in Scunthorpe,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Scunthorpe valuers.
Max was the the leasehold proprietor of a high value apartment in Scunthorpe being marketed with a lease of a little over 61 years unexpired. Max informally approached his landlord a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Max to exercise his statutory right. Max procured expert legal guidance and secured satisfactory resolution without resorting to tribunal and ending up with a market value flat.
In 2011 we were approached by Ms Phoebe Sánchez who, having purchased a studio flat in Scunthorpe in March 2011. The question was if we could estimate the premium could be to extend the lease by ninety years. Comparable homes in Scunthorpe with 100 year plus lease were worth £166,800. The average ground rent payable was £50 collected monthly. The lease came to a finish in 2076. Given that there were 50 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £32,300 and £37,400 not including costs.
Last year we were called by Mr and Mrs. V Bonnet , who took over the lease of a newly refurbished flat in Scunthorpe in April 2012. We are asked if we could approximate the price could be for a 90 year lease extension. Identical homes in Scunthorpe with an extended lease were valued around £280,000. The mid-range ground rent payable was £45 collected monthly. The lease ran out in 2096. Considering the 70 years unexpired we approximated the premium to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of legals.