There is no doubt about it a leasehold property in Smethwick is a wasting asset as a result of the diminishing lease term. If the residual term has, over 125 years to run then this decrease may be negligible nevertheless there will become a point in time when a lease has less than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary reason why you should consider extending sooner as opposed to later. The majority of flat owners in Smethwick will meet the qualifying criteria; that being said a lawyer should be able to confirm if you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold properties in Smethwick with more than one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barclays plc | |
| Skipton Building Society | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
The conveyancers that we work with handle Smethwick 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 conveyancing solicitor we work with provide it.
Last Winter Owen, came seriously near to the 80-year threshold with the lease on his one bedroom apartment in Smethwick. Having bought his home 19 years ago, the length of the lease was of minimal interest. Thankfully, it dawned on him that he would soon be paying an inflated amount for a lease extension. Owen was able to extend his lease just under the wire last March. Owen and the landlord who owned the flat above eventually settled on an amount of £5,000 . If he not met the deadline, the price would have increased by at least £1,075.
Last Summer we were phoned by Mr and Mrs. J Girard , who was assigned a lease of a purpose-built flat in Smethwick in April 2010. We are asked if we could shed any light on how much (approximately) premium would be to extend the lease by an additional years. Identical flats in Smethwick with a long lease were valued around £295,000. The average amount of ground rent was £45 collected quarterly. The lease elapsed on 16 May 2100. Taking into account 74 years unexpired we approximated the premium to the landlord to extend the lease to be between £8,600 and £9,800 plus fees.
Mrs J Parker purchased a basement apartment in Smethwick in November 1995. We are asked if we could estimate the premium would likely be to extend the lease by an additional years. Comparable premises in Smethwick with an extended lease were valued about £243,000. The average amount of ground rent was £65 billed monthly. The lease ran out on 8 February 2089. Having 63 years left we approximated the premium to the landlord for the lease extension to be within £20,000 and £23,000 exclusive of costs.