When it comes to long leasehold premises in Walmley, you are actually purchasing an entitlement to reside in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably once there are fewer than 80 years left. Anyone in Walmley with a lease approaching 81 years left should seriously think of extending it as soon as possible. Once the lease term has under 80 years outstanding, under the relevant legislation the freeholder can calculate and charge a larger amount, based on a technical computation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Santander | |
| Skipton Building Society | |
| The Mortgage Works | |
| Virgin |
Retaining our service gives you enhanced control over the value of your Walmley leasehold, as your property will be more valuable and saleable in respect of lease length should you want 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.
Tommy was the the leasehold owner of a conversion flat in Walmley on the market with a lease of fraction over 61 years outstanding. Tommy informally contacted his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Tommy to exercise his statutory right. Tommy obtained expert advice and secured satisfactory resolution informally and readily saleable.
In 2009 we were approached by Mrs Ella Nguyen who, having owned a basement flat in Walmley in June 1995. The dilemma was if we could approximate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Similar properties in Walmley with an extended lease were worth £250,400. The average ground rent payable was £65 invoiced per annum. The lease ran out in 2090. Given that there were 64 years left we approximated the premium to the freeholder to extend the lease to be within £19,000 and £22,000 plus legals.
Last Winter we were approach by Mr and Mrs. B Reed , who took over the lease of a ground floor flat in Walmley in February 2006. The question was if we could shed any light on how much (approximately) price would likely be to extend the lease by ninety years. Comparable properties in Walmley with 100 year plus lease were worth £189,000. The mid-range ground rent payable was £55 billed annually. The lease ended on 28 January 2079. Considering the 53 years outstanding we approximated the premium to the landlord for the lease extension to be within £28,500 and £33,000 not including legals.