It’s an underpublicised certainty that a The Borough residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the The Borough property market.Once your lease nears 85ish years, you should start considering a lease extension. If the number of years remaining falls below eighty years, you will end up paying half of the property's 'marriage value' in addition to 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 Most flat owners in The Borough will be able to extend under the legislation; however a conveyancer will be able to confirm whether you qualify for an extension. In some situations you may not qualify. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the formalities.
It is generally considered that a residential leasehold with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Coventry Building Society | |
| Halifax | |
| Leeds Building Society | |
| Nationwide Building Society |
Lease extensions in The Borough can be a difficult process. We recommend you obtain professional help from a lawyer and valuer with experience in this area.
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 in-depth market knowledge procuring The Borough lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Benjamin owned a high value flat in The Borough on the market with a lease of a few days over 61 years outstanding. Benjamin informally contacted his freeholder a well known Manchester-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £150 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Benjamin to invoke his statutory right. Benjamin obtained expert legal guidance and was able to make a more informed judgement and deal with the matter and sell the property.
Last Summer we were contacted by Mr Y Kelly , who purchased a garden apartment in The Borough in February 2010. We are asked if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Comparative homes in The Borough with a long lease were worth £260,000. The average ground rent payable was £50 billed yearly. The lease concluded on 5 September 2098. Given that there were 72 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus professional charges.
In 2010 we were e-mailed by Mr B Petit who, having owned a basement flat in The Borough in March 2005. The question was if we could shed any light on how much (approximately) price would be for a 90 year lease extension. Similar premises in The Borough with a long lease were in the region of £256,600. The mid-range ground rent payable was £60 collected per annum. The lease concluded in 2078. Given that there were 52 years left we estimated the compensation to the landlord to extend the lease to be between £39,000 and £45,000 not including expenses.