The Borough leases on residential properties are gradually losing value. if your lease has approximately ninety years remaining, you should start considering the need for a lease extension. 80 years is a significant number: when the remaining term of a lease dips below this level then you start incurring an additional element called marriage value. Leasehold owners in The Borough will usually qualify for a lease extension; however It would be wise to check with a conveyancing solicitor to confirm if you qualify. In certain circumstances you may not be entitled. There are also strict timetables and formalities to comply with once the process has commenced so it’s wise to be guided by a conveyancer during the process.
It is generally accepted that a property with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Godiva Mortgages | |
| Leeds Building Society | |
| Nationwide Building Society | |
| Virgin |
Lease extensions in The Borough can be a difficult process. We recommend you secure professional help from a lawyer and surveyor well versed in the legislation and lease extension process.
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 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.
In recent months Rory, started to get near to the 80-year mark with the lease on his studio flat in The Borough. In buying his property two decades ago, the lease term was of minimal relevance. As luck would have it, he realised he would soon be paying an escalated premium for a lease extension. Rory was able to extend his lease just under the wire in September. Rory and the freeholder in the end agreed on a premium of £6,000 . If he had missed the deadline, the amount would have increased by at least £1,025.
In 2013 we were contacted by Dr H Garcia who, having acquired a basement flat in The Borough in August 2000. We are asked if we could approximate the price could be for a 90 year lease extension. Identical residencies in The Borough with a long lease were worth £245,000. The mid-range ground rent payable was £50 invoiced per annum. The lease terminated in 2094. Taking into account 68 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including legals.
In 2009 we were called by Mr and Mrs. F Laurent who, having bought a purpose-built apartment in The Borough in January 2000. We are asked if we could estimate the compensation to the landlord would be to extend the lease by 90 years. Comparable premises in The Borough with 100 year plus lease were worth £285,000. The mid-range amount of ground rent was £55 billed yearly. The lease came to a finish on 18 August 2105. Taking into account 79 years unexpired we estimated the premium to the landlord to extend the lease to be within £13,300 and £15,400 not including costs.