Unfortunately that a Skellingthorpe residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Skellingthorpe property market.Once your lease gets to 85ish years, you should start considering a lease extension. If lease term slips under 80 years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most flat owners in Skellingthorpe will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you are eligibility. In some situations you may not qualify. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the formalities.
Leasehold residencies in Skellingthorpe with in excess of one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Chelsea Building Society | |
| Nationwide Building Society | |
| Skipton Building Society | |
| Virgin |
The conveyancing solicitors that we work with handle Skellingthorpe 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.
Last year Hugo, came precariously close to the eighty-year threshold with the lease on his first floor flat in Skellingthorpe. Having bought his home two decades ago, the unexpired term was of minimal bearing. Fortunately, he became aware that he would imminently be paying an escalated premium for a lease extension. Hugo arranged for a lease extension at the eleventh hour in August. Hugo and the freeholder via the managing agents in the end settled on the final figure of £6,000 . If the lease had dropped below eighty years, the figure would have escalated by at least £850.
In 2011 we were contacted by Mr Lucas Nguyen who, having took over the lease of a ground floor flat in Skellingthorpe in August 2001. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Identical premises in Skellingthorpe with a long lease were in the region of £206,200. The average ground rent payable was £60 collected yearly. The lease elapsed in 2082. Considering the 56 years left we approximated the premium to the freeholder for the lease extension to be within £32,300 and £37,400 not including legals.
Mr and Mrs. N Allen bought a garden flat in Skellingthorpe in March 2008. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by a further 90 years. Similar homes in Skellingthorpe with an extended lease were worth £300,000. The mid-range ground rent payable was £50 billed every twelve months. The lease came to a finish in 2102. Having 76 years remaining we calculated the premium to the landlord to extend the lease to be within £8,600 and £9,800 plus fees.