There is no doubt about it a leasehold property in Underwood is a wasting asset as a result of the shortening lease. If the residual term has, over 125 years remaining then this decrease may be of little impact that being said there will become a stage when a lease has less than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main rational as to why you should consider extending sooner rather than later. Most flat owners in Underwood will meet the qualifying criteria; that being said a conveyancing solicitor should be able to advise whether you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is conventional wisdom that a property with more than 100 years remaining is worth approximately the same 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 |
|---|---|
| Bank of Scotland | |
| Barclays plc | |
| Coventry Building Society | |
| Leeds Building Society | |
| The Mortgage Works |
Using our service will provide you increased control over the value of your Underwood leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last year Leon, came precariously close to the eighty-year threshold with the lease on his two bedroom flat in Underwood. In buying his home two decades ago, the unexpired term was of minimal importance. Thankfully, he recognised he would soon be paying an inflated amount for Extending the lease. Leon arranged for a lease extension just under the wire last June. Leon and the freeholder via the managing agents ultimately agreed on a premium of £5,500 . If the lease had gone lower than eighty years, the amount would have increased by a minimum £1,100.
In 2013 we were e-mailed by Mr Aaron Fournier who, having moved into a one bedroom flat in Underwood in October 2009. The dilemma was if we could approximate the premium could be to prolong the lease by a further 90 years. Similar residencies in Underwood with a long lease were in the region of £260,000. The average amount of ground rent was £50 invoiced every twelve months. The lease ran out in 2098. Having 72 years left we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus legals.
Dr S Martin bought a one bedroom flat in Underwood in March 2011. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by a further 90 years. Similar residencies in Underwood with a long lease were valued around £256,600. The average amount of ground rent was £60 collected every twelve months. The lease came to a finish on 3 January 2078. Having 52 years outstanding we approximated the premium to the freeholder to extend the lease to be within £41,800 and £48,400 not including costs.