There is no doubt about it a leasehold flat or house in Woodhouse and Handsworth is a wasting asset as a result of the diminishing lease term. Where the residual term has, in excess of 100 years remaining then this decrease may be negligible however there will become a point in time when a lease has fewer than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should extend the lease without delay. Most flat owners in Woodhouse and Handsworth will qualify for this right; that being said a conveyancing solicitor can advise if you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold premises in Woodhouse and Handsworth with in excess of one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Chelsea Building Society | |
| Halifax | |
| Santander | |
| Yorkshire Building Society |
Using our service will provide you better control over the value of your Woodhouse and Handsworth leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Andrew owned a 2 bedroom apartment in Woodhouse and Handsworth on the market with a lease of just over sixty years unexpired. Andrew informally spoke with his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £100 yearly. No ground rent would be due on a lease extension were Andrew to invoke his statutory right. Andrew obtained expert legal guidance and was able to make a more informed judgement and deal with the matter and readily saleable.
Last month we were phoned by Mr Lewis Díaz , who moved into a basement flat in Woodhouse and Handsworth in June 2005. We are asked if we could approximate the compensation to the landlord could be for a 90 year lease extension. Similar properties in Woodhouse and Handsworth with 100 year plus lease were valued about £218,000. The average amount of ground rent was £45 collected monthly. The lease expired in 2089. Given that there were 63 years unexpired we calculated the compensation to the landlord to extend the lease to be between £17,100 and £19,800 exclusive of legals.
In 2013 we were called by Ms Catherine Lefèvre who, having bought a ground floor apartment in Woodhouse and Handsworth in October 1998. We are asked if we could shed any light on how much (roughly) price would likely be to prolong the lease by ninety years. Similar premises in Woodhouse and Handsworth with 100 year plus lease were valued around £265,000. The mid-range amount of ground rent was £50 collected monthly. The lease expiry date was in 2100. Considering the 74 years outstanding we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including professional charges.