It’s an underpublicised certainty that a Townhill residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Townhill property market.Once your lease nears 85ish years, you should start considering a lease extension. If the number of years remaining dips under eighty years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Townhill will be able to extend under the legislation; however a lawyer should be able to confirm if you are eligibility. In some cases you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
Leasehold premises in Townhill with in excess of one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Godiva Mortgages | |
| Leeds Building Society | |
| Nationwide Building Society | |
| TSB |
Lease extensions in Townhill can be a difficult process. We recommend you obtain guidance from a conveyancer and surveyor with experience in lease extensions.
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 Townhill lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Thomas, came very near to the eighty-year threshold with the lease on his two bedroom flat in Townhill. In buying his property twenty years ago, the unexpired term was of minimal importance. by good luck, he noticed he would imminently be paying way over the odds for a lease extension. Thomas arranged for a lease extension at the eleventh hour last April. Thomas and the landlord who owned the flat above in the end agreed on a premium of £5,500 . If he not met the deadline, the sum would have become more exhorbitant by a minimum £875.
In 2010 we were approached by Ms A Díaz who, having took over the lease of a one bedroom flat in Townhill in February 1996. The dilemma was if we could approximate the price could be for a 90 year lease extension. Identical homes in Townhill with a long lease were in the region of £181,600. The average ground rent payable was £55 invoiced per annum. The lease terminated on 8 May 2078. Taking into account 52 years left we approximated the premium to the freeholder for the lease extension to be within £30,400 and £35,200 exclusive of legals.
Dr T White acquired a one bedroom flat in Townhill in October 2007. The dilemma was if we could estimate the premium would be for a ninety year lease extension. Identical properties in Townhill with an extended lease were valued around £285,000. The average amount of ground rent was £45 billed quarterly. The lease ran out on 17 September 2098. Having 72 years unexpired we calculated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 not including costs.