As the length of the unexpired term of a Street domestic lease lessens so does its value and therefore the value of your property. Where the residual term has, more than 100 years remaining then this decrease may be negligible nevertheless there will become a stage when a lease has less than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main rational as to why you should extend the lease without delay. The majority of flat owners in Street will qualify for this right; nevertheless a conveyancing solicitor should be able to confirm whether you qualify for a lease extension. 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.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Coventry Building Society | |
| National Westminster Bank | |
| Nationwide Building Society | |
| Royal Bank of Scotland |
Lease extensions in Street can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Street lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Jackson, came very near to the 80-year threshold with the lease on his studio apartment in Street. In buying his property twenty years ago, the length of the lease was of little importance. by good luck, he noticed he would soon be paying way over the odds for Extending the lease. Jackson extended the lease just under the wire in August. Jackson and the freeholder ultimately agreed on sum of £5,000 . If the lease had gone lower than 80 years, the amount would have increased by at least £950.
In 2014 we were contacted by Mrs P Jones who, having was assigned a lease of a garden flat in Street in October 2011. The question was if we could shed any light on how much (roughly) price would likely be for a ninety year lease extension. Comparative flats in Street with a long lease were worth £181,600. The average ground rent payable was £55 billed monthly. The lease terminated on 11 July 2078. Having 52 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £30,400 and £35,200 plus expenses.
Last Christmas we were called by Mr and Mrs. K Martinez , who acquired a garden flat in Street in June 2005. The dilemma was if we could estimate the premium would likely be for a ninety year lease extension. Comparative homes in Street with a long lease were worth £290,000. The mid-range amount of ground rent was £45 invoiced quarterly. The lease came to a finish on 23 May 2098. Given that there were 72 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £11,400 and £13,200 not including fees.