Unfortunately that a Telford residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Telford 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 dips lower than eighty years - otherwise a higher premium will be payable. The majority of flat owners in Telford will be able to extend under the legislation; however a conveyancer should be able to confirm whether you qualify for an extension. In some cases you may not be entitled. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancer throughout the process.
Leasehold residencies in Telford with over 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | |
| Leeds Building Society | |
| Nationwide Building Society | |
| Santander | |
| TSB |
Retaining our service gives you better control over the value of your Telford leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Jamie, started to get close to the eighty-year mark with the lease on his one bedroom flat in Telford. In buying his property two decades ago, the length of the lease was of minimal relevance. Thankfully, he realised he would imminently be paying way over the odds for Extending the lease. Jamie extended the lease just ahead of time in September. Jamie and the freeholder via the managing agents subsequently agreed on the final figure of £5,500 . If he not met the deadline, the figure would have gone up by at least £1,025.
Mrs O Laurent was assigned a lease of a basement apartment in Telford in August 1998. The dilemma was if we could approximate the premium would be for a 90 year lease extension. Similar premises in Telford with 100 year plus lease were worth £250,400. The average ground rent payable was £65 collected every twelve months. The lease expiry date was in 2090. Having 64 years as a residual term we approximated the premium to the landlord for the lease extension to be within £19,000 and £22,000 exclusive of legals.
Mrs I Garcia moved into a garden flat in Telford in November 2004. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year lease extension. Comparative homes in Telford with a long lease were worth £184,000. The mid-range ground rent payable was £55 invoiced quarterly. The lease finished on 15 April 2079. Taking into account 53 years left we approximated the premium to the landlord for the lease extension to be between £28,500 and £33,000 plus legals.