It’s a harsh certainty that a Summerhill 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 reduction being disguised by increases in the Summerhill property market.Once your lease nears 85ish years, you need to start considering a lease extension. If the number of years remaining falls below eighty years, you will then be required to pay 50% 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 The majority of leasehold owners in Summerhill will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you qualify for an extension. In some situations you may not be entitled. 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 process.
Leasehold residencies in Summerhill with in excess of one hundred years unexpired on the lease are often 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 to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Barnsley Building Society | |
| Coventry Building Society | |
| Virgin | |
| Yorkshire Building Society |
The lawyers that we work with handle Summerhill 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.
Two years ago Ibrahim, came precariously near to the eighty-year mark with the lease on his basement flat in Summerhill. Having purchased his home two decades ago, the length of the lease was of minimal interest. by good luck, it dawned on him that he would soon be paying way over the odds for Extending the lease. Ibrahim arranged for a lease extension at the eleventh hour in July. Ibrahim and the landlord who owned the flat above ultimately agreed on an amount of £5,500 . If he failed to meet the deadline, the premium would have escalated by at least £850.
Mr and Mrs. U Jones completed a garden apartment in Summerhill in November 1995. The question was if we could estimate the price could be for a 90 year extension to my lease. Comparable premises in Summerhill with a long lease were worth £200,000. The average amount of ground rent was £50 collected annually. The lease elapsed in 2103. Given that there were 77 years remaining we calculated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 not including legals.
Ms I Sánchez owned a recently refurbished flat in Summerhill in June 2002. We are asked if we could approximate the compensation to the landlord could be to extend the lease by ninety years. Comparative flats in Summerhill with a long lease were valued around £265,200. The average ground rent payable was £65 collected quarterly. The lease lapsed on 13 March 2092. Taking into account 66 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £15,200 and £17,600 plus professional charges.