The value of Umberleigh leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate significantly once the remaining term is less than eighty years
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Birmingham Midshires | |
| Chelsea Building Society | |
| TSB | |
| Yorkshire Building Society |
The conveyancing solicitors that we work with handle Umberleigh 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 conveyancing solicitor we work with provide it.
Last Winter Eli, came critically near to the 80-year threshold with the lease on his leasehold apartment in Umberleigh. Having purchased his flat twenty years ago, the lease term was of no importance. Luckily, he recognised he would soon be paying an escalated premium for Extending the lease. Eli was able to extend his lease at the eleventh hour last July. Eli and the landlord eventually settled on an amount of £6,000 . If the lease had gone below 80 years, the amount would have gone up by at least £1,125.
In 2012 we were phoned by Mr G Flores who, having purchased a newly refurbished apartment in Umberleigh in April 2005. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year extension to my lease. Comparative properties in Umberleigh with 100 year plus lease were valued about £216,000. The average ground rent payable was £60 collected every twelve months. The lease expired on 5 February 2084. Taking into account 58 years remaining we calculated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 exclusive of legals.
Dr U Green purchased a basement apartment in Umberleigh in November 2012. We are asked if we could approximate the compensation to the landlord would be to extend the lease by 90 years. Comparative residencies in Umberleigh with an extended lease were valued about £205,000. The average amount of ground rent was £50 invoiced quarterly. The lease terminated on 18 August 2104. Considering the 78 years left we approximated the compensation to the freeholder to extend the lease to be between £7,600 and £8,800 exclusive of legals.