Unfortunately that a Wide Open residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Wide Open property market.Where your lease has approximately 90 years left, you need to 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 slips lower than 80 years - otherwise a higher premium will be due. The majority of flat owners in Wide Open will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you are eligibility. In some situations you may not qualify. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer for the duration of the process.
It is generally considered that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Chelsea Building Society | |
| Santander | |
| TSB | |
| Virgin |
Irrespective of whether you are a tenant or a freeholder in Wide Open,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Wide Open valuers.
During the course of the last few months Eli, came precariously near to the 80-year threshold with the lease on his garden flat in Wide Open. Having bought his home two decades ago, the unexpired term was of minimal concern. Luckily, he noticed he would soon be paying an inflated amount for a lease extension. Eli was able to extend his lease just ahead of time in April. Eli and the freeholder via the managing agents in the end settled on sum of £6,000 . If he not met the deadline, the premium would have escalated by a minimum £1,025.
Last August we were phoned by Dr Georgia Davis , who took over the lease of a one bedroom flat in Wide Open in January 1998. The question was if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Comparable premises in Wide Open with 100 year plus lease were in the region of £193,400. The mid-range ground rent payable was £65 invoiced yearly. The lease came to a finish in 2085. Having 59 years remaining we approximated the premium to the landlord to extend the lease to be within £21,900 and £25,200 not including costs.
Last Spring we were approach by Ms Lily Thompson , who bought a garden apartment in Wide Open in May 2004. The question was if we could approximate the price would likely be to prolong the lease by 90 years. Identical properties in Wide Open with an extended lease were in the region of £255,000. The average ground rent payable was £50 billed yearly. The lease ran out on 10 September 2096. Having 70 years left we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including costs.