When it comes to residential leasehold property in Rednal, you are actually buying a right to live in a property for a prescribed time frame. Modern 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 may consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately greater especially once there are less than 80 years left. Residents in Rednal with a lease nearing 81 years remaining should seriously think of extending it without delay. When the lease term has under 80 years left, under the current Act the freeholder can calculate and levy a larger premium, based on a technical calculation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Birmingham Midshires | |
| National Westminster Bank | |
| Nationwide Building Society | |
| TSB |
The conveyancers that we work with undertake Rednal 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.
During the course of the last few months Max, came precariously close to the eighty-year mark with the lease on his purpose- built apartment in Rednal. In buying his property 19 years previously, the unexpired term was of little bearing. As luck would have it, he noticed he needed to take action soon on Extending the lease. Max was able to extend his lease at the eleventh hour last July. Max and the landlord in the end settled on an amount of £5,000 . If the lease had descended lower than eighty years, the sum would have escalated by at least £1,050.
In 2010 we were contacted by Mr and Mrs. Y Davis who, having bought a ground floor apartment in Rednal in April 1996. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Similar homes in Rednal with a long lease were worth £200,000. The average amount of ground rent was £50 collected yearly. The lease expired on 24 February 2103. Considering the 77 years left we calculated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 not including expenses.
In 2014 we were phoned by Mr and Mrs. K Hernández who, having was assigned a lease of a studio apartment in Rednal in April 2003. The dilemma was if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Identical residencies in Rednal with a long lease were in the region of £260,200. The average amount of ground rent was £65 invoiced yearly. The lease expired on 21 October 2092. Given that there were 66 years outstanding we calculated the premium to the landlord for the lease extension to be within £16,200 and £18,600 not including costs.