Owning a flat usually means owning a lease of the property, which has a set term of years. This lease will ordinarily be granted for a prescribed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Upper Tean. Inevitably, the period of lease remaining shortens as time goes by. This may slip by relatively unnoticed when the residence has to be disposed of or re-mortgaged. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease. Eligible leaseholders in Upper Tean have the right to extend the lease for an additional 90 years under statute. You should give careful deliberation before putting off your Upper Tean lease extension. Holding off that expense now simply increases the price you will eventually incur to extend your lease
It is generally considered 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 residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | |
| Leeds Building Society | |
| Skipton Building Society | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
Irrespective of whether you are a tenant or a freeholder in Upper Tean,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Upper Tean valuers.
Lewis was the the leasehold proprietor of a conversion flat in Upper Tean being sold with a lease of fraction over 72 years remaining. Lewis on an informal basis spoke with his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £100 annually. Ordinarily, ground rent would not be due on a lease extension were Lewis to invoke his statutory right. Lewis obtained expert legal guidance and was able to make a more informed decision and deal with the matter and readily saleable.
Last year we were contacted by Dr Toby Reed , who bought a purpose-built apartment in Upper Tean in April 2010. We are asked if we could estimate the price would be for a ninety year extension to my lease. Comparable residencies in Upper Tean with 100 year plus lease were valued about £233,200. The average amount of ground rent was £60 billed per annum. The lease finished on 7 September 2087. Considering the 61 years unexpired we estimated the premium to the landlord to extend the lease to be between £22,800 and £26,400 plus fees.
In 2012 we were e-mailed by Mr D Walker who, having bought a recently refurbished flat in Upper Tean in February 2004. The dilemma was if we could shed any light on how much (roughly) premium would likely be for a ninety year lease extension. Comparative homes in Upper Tean with an extended lease were valued about £166,800. The average ground rent payable was £50 invoiced annually. The lease concluded in 2076. Considering the 50 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £32,300 and £37,400 plus legals.