Unfortunately that a South Cave residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the South Cave property market.Where your lease has approximately 90 years left, 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 falls under eighty years - otherwise a higher amount will be payable. Most flat owners in South Cave will be able to extend under the legislation; however a lawyer will be able to clarify whether you qualify for an extension. In some cases you may not qualify. There are also strict timetables and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer from beginning to end of the formalities.
It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | |
| Halifax | |
| Nationwide Building Society | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
Irrespective of whether you are a tenant or a freeholder in South Cave,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with South Cave valuers.
Last October Jackson, started to get near to the 80-year threshold with the lease on his ground floor flat in South Cave. In buying his property two decades ago, the lease term was of no significance. As luck would have it, he recognised he would soon be paying an escalated premium for Extending the lease. Jackson arranged for a lease extension just ahead of time last January. Jackson and the landlord who owned the flat above subsequently agreed on the final figure of £5,500 . If he had missed the deadline, the figure would have gone up by at least £1,000.
Dr Riley Bailey acquired a one bedroom flat in South Cave in June 2009. We are asked if we could estimate the premium could be to extend the lease by 90 years. Comparative flats in South Cave with an extended lease were in the region of £166,400. The mid-range ground rent payable was £60 invoiced every twelve months. The lease elapsed on 8 September 2080. Taking into account 54 years outstanding we calculated the premium to the freeholder to extend the lease to be between £32,300 and £37,400 not including expenses.
Last February we were called by Mr and Mrs. J Lambert , who acquired a garden apartment in South Cave in January 2011. We are asked if we could approximate the price would likely be for a ninety year extension to my lease. Identical residencies in South Cave with a long lease were worth £227,800. The mid-range ground rent payable was £45 billed annually. The lease terminated in 2091. Having 65 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 not including costs.