Unfortunately that a Rednal residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Rednal property prices.Once your lease gets to 85ish years, you need to start considering a lease extension. If the number of years remaining drops under eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most leasehold owners in Rednal will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm if you are eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer throughout the process.
Leasehold residencies in Rednal with more than one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| Coventry Building Society | |
| Nationwide Building Society | |
| Santander |
The lawyers that we work with procure 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 lawyer we work with provide it.
Two years ago Riley, came dangerously close to the 80-year mark with the lease on his garden flat in Rednal. Having purchased his flat 18 years previously, the unexpired term was of no relevance. by good luck, he recognised he would soon be paying way over the odds for a lease extension. Riley was able to extend his lease just in the nick of time in July. Riley and the freeholder in the end settled on sum of £5,500 . If he had missed the deadline, the premium would have escalated by at least £875.
In 2010 we were called by Mr and Mrs. R Cox who, having acquired a ground floor flat in Rednal in April 2010. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year lease extension. Comparative flats in Rednal with 100 year plus lease were in the region of £216,000. The mid-range ground rent payable was £60 invoiced every twelve months. The lease terminated in 2084. Given that there were 58 years outstanding we approximated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 not including expenses.
Last October we were called by Mrs Rebecca Evans , who acquired a garden flat in Rednal in July 2001. The question was if we could estimate the premium would likely be to extend the lease by ninety years. Comparable homes in Rednal with an extended lease were worth £200,000. The average amount of ground rent was £50 billed per annum. The lease finished in 2104. Considering the 78 years left we estimated the premium to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of professional charges.