When it comes to domestic leasehold premises in Walsall, you effectively rent it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably once there are less than 80 years remaining. Leasehold owners in Walsall with a lease approaching 81 years remaining should seriously think of extending it as soon as possible. When a lease has less than 80 years remaining, under the relevant legislation the landlord is entitled to calculate and demand a larger amount, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
It is generally considered that a property with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Birmingham Midshires | |
| Santander | |
| The Mortgage Works | |
| Virgin |
The conveyancing solicitors that we work with procure Walsall 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 conveyancer we work with provide it.
Theo owned a studio flat in Walsall being sold with a lease of just over sixty years left. Theo on an informal basis contacted his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Theo to exercise his statutory right. Theo procured expert legal guidance and was able to make a more informed judgement and handle with the matter and readily saleable.
In 2014 we were approached by Mr and Mrs. M Hernández who, having moved into a ground floor flat in Walsall in August 2003. The question was if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Comparable residencies in Walsall with 100 year plus lease were in the region of £267,600. The mid-range ground rent payable was £65 billed yearly. The lease lapsed on 5 November 2093. Given that there were 67 years left we estimated the premium to the freeholder for the lease extension to be between £14,300 and £16,400 not including legals.
Mr and Mrs. E Díaz acquired a garden flat in Walsall in May 1997. The question was if we could estimate the price would be for a 90 year lease extension. Identical properties in Walsall with 100 year plus lease were in the region of £206,200. The mid-range amount of ground rent was £60 invoiced annually. The lease finished on 27 March 2082. Taking into account 56 years outstanding we approximated the compensation to the landlord for the lease extension to be within £32,300 and £37,400 exclusive of professional charges.