As the the remaining lease term of a Sowerby Bridge residential lease decreases so does its value and therefore the value of your property. If the residual term has, over 100 years to run then this decrease may be negligible however there will become a point in time when a lease has under than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main logic behind why you should consider extending sooner rather than later. The majority of flat owners in Sowerby Bridge will meet the qualifying criteria; nevertheless a conveyancing solicitor will be able to advise whether you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold premises in Sowerby Bridge with over one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value 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 estate charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Chelsea Building Society | |
| Halifax | |
| Royal Bank of Scotland |
The conveyancers that we work with procure Sowerby Bridge 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.
Trailing protracted discussions with the freeholder of her two bedroom flat in Sowerby Bridge, Louise initiated the lease extension process just as the lease was nearing the all-important eighty-year threshold. The lease extension was finalised in January 2014. The freeholder’s fees were kept to an absolute minimum.
Dr H Dupont acquired a one bedroom apartment in Sowerby Bridge in June 2000. We are asked if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Comparable premises in Sowerby Bridge with an extended lease were valued about £250,000. The average ground rent payable was £50 collected yearly. The lease terminated in 2095. Taking into account 69 years remaining we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including fees.
Dr Amber King acquired a one bedroom flat in Sowerby Bridge in May 2002. The dilemma was if we could approximate the premium would be for a ninety year extension to my lease. Comparative flats in Sowerby Bridge with a long lease were valued about £290,000. The average ground rent payable was £60 collected yearly. The lease expired on 4 January 2106. Given that there were 80 years unexpired we approximated the premium to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of expenses.