Unfortunately that a Upton Upon Severn residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Upton Upon Severn property market.Once your lease nears 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls lower than 80 years - otherwise a higher premium will be due. The majority of flat owners in Upton Upon Severn will be able to extend under the legislation; however a conveyancer should be able to confirm if you are eligibility. In some cases you may not qualify. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer throughout the formalities.
It is generally considered that a property with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Irrespective of whether you are a tenant or a freeholder in Upton Upon Severn,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Upton Upon Severn valuers.
Mason was the the leasehold owner of a 2 bedroom flat in Upton Upon Severn on the market with a lease of just over 59 years left. Mason on an informal basis approached his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 per annum. Ordinarily, ground rent would not be payable on a lease extension were Mason to exercise his statutory right. Mason procured expert advice and was able to make a more informed judgement and deal with the matter and readily saleable.
In 2012 we were e-mailed by Dr Connor Evans who, having purchased a one bedroom apartment in Upton Upon Severn in July 2006. The dilemma was if we could estimate the price could be to extend the lease by a further 90 years. Similar residencies in Upton Upon Severn with an extended lease were in the region of £295,000. The average ground rent payable was £45 collected every twelve months. The lease ran out in 2099. Considering the 74 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 plus professional charges.
Mr and Mrs. D Bell owned a newly refurbished flat in Upton Upon Severn in March 1999. The question was if we could estimate the compensation to the landlord could be to extend the lease by ninety years. Identical residencies in Upton Upon Severn with 100 year plus lease were in the region of £243,000. The mid-range ground rent payable was £65 collected every twelve months. The lease terminated on 16 March 2088. Taking into account 63 years remaining we approximated the premium to the freeholder for the lease extension to be between £20,000 and £23,000 exclusive of expenses.