Talbot Green leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. It is the case that most Talbot Green tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Talbot Green you would be well advised to check if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
Leasehold residencies in Talbot Green with over one hundred years remaining 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 home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Coventry Building Society | |
| National Westminster Bank | |
| TSB |
The lawyers that we work with handle Talbot Green 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 conveyancer we work with provide it.
Off the back of unsuccessful correspondence with the landlord of her purpose-built flat in Talbot Green, Louise started the lease extension process as the eighty year deadline was rapidly advancing. The transaction was finalised in March 2011. The landlord’s charges were restricted to approximately 650 GBP.
In 2010 we were e-mailed by Mr John Howard who, having bought a basement flat in Talbot Green in September 2001. The question was if we could approximate the compensation to the landlord would be to prolong the lease by ninety years. Comparable homes in Talbot Green with 100 year plus lease were valued around £256,600. The average ground rent payable was £60 invoiced quarterly. The lease ended in 2078. Having 52 years remaining we calculated the compensation to the landlord to extend the lease to be between £41,800 and £48,400 plus legals.
In 2012 we were contacted by Dr N David who, having moved into a purpose-built apartment in Talbot Green in August 1996. The dilemma was if we could approximate the compensation to the landlord would be for a ninety year lease extension. Identical residencies in Talbot Green with 100 year plus lease were in the region of £215,600. The average amount of ground rent was £45 collected annually. The lease concluded on 13 July 2088. Having 62 years outstanding we estimated the premium to the freeholder to extend the lease to be within £18,100 and £20,800 not including fees.