It’s a harsh truth that a Timsbury residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Timsbury property prices.Once your lease gets to 85ish years, you should start thinking about 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' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most flat owners in Timsbury will be able to extend under the legislation; however a conveyancer will be able to clarify if you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to follow once the process is instigated and you will need to be guided by your conveyancer for the duration of the process.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 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 |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| Coventry Building Society | |
| Halifax | |
| Nationwide Building Society |
The lawyers that we work with undertake Timsbury 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 lawyer we work with provide it.
Seth was the the leasehold proprietor of a conversion flat in Timsbury on the market with a lease of just over sixty years left. Seth informally approached his freeholder being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £125 per annum. No ground rent would be due on a lease extension were Seth to exercise his statutory right. Seth obtained expert legal guidance and secured satisfactory resolution without going to tribunal and sell the flat.
In 2010 we were approached by Mr and Mrs. Y Miller who, having moved into a first floor apartment in Timsbury in February 1995. The dilemma was if we could shed any light on how much (roughly) premium would be for a ninety year extension to my lease. Identical residencies in Timsbury with a long lease were valued around £245,000. The mid-range ground rent payable was £45 collected quarterly. The lease lapsed in 2094. Taking into account 68 years left we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus costs.
Dr Hannah Hall purchased a garden apartment in Timsbury in October 1998. The question was if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year lease extension. Comparable residencies in Timsbury with an extended lease were in the region of £280,000. The mid-range amount of ground rent was £55 collected annually. The lease finished in 2105. Taking into account 79 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of legals.