Unfortunately that a Tedburn St Mary residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Tedburn St Mary property market.Once your lease gets to 85ish years, 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 falls lower than eighty years - otherwise a higher amount will be payable. The majority of flat owners in Tedburn St Mary will be able to extend under the legislation; however a lawyer should be able to clarify whether you qualify for an extension. In some situations you may not qualify. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your lawyer from beginning to end of the formalities.
Leasehold residencies in Tedburn St Mary with in excess of one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Coventry Building Society | |
| Godiva Mortgages | |
| Leeds Building Society | |
| Skipton Building Society |
The conveyancing solicitors that we work with procure Tedburn St Mary 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.
Callum was the the leasehold proprietor of a 2 bedroom apartment in Tedburn St Mary being marketed with a lease of just over sixty years remaining. Callum on an informal basis spoke with his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Callum to exercise his statutory right. Callum procured expert advice and secured satisfactory deal without resorting to tribunal and sell the property.
In 2011 we were contacted by Mr William Brown who, having acquired a one bedroom apartment in Tedburn St Mary in November 1996. The dilemma was if we could estimate the price could be for a 90 year extension to my lease. Comparable residencies in Tedburn St Mary with a long lease were valued about £275,000. The mid-range ground rent payable was £45 billed quarterly. The lease ended on 10 August 2095. Considering the 69 years remaining we calculated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 not including costs.
Mrs E Miller owned a basement apartment in Tedburn St Mary in August 2003. We are asked if we could estimate the premium could be to prolong the lease by ninety years. Comparable flats in Tedburn St Mary with an extended lease were in the region of £216,000. The mid-range amount of ground rent was £60 collected annually. The lease elapsed on 18 October 2084. Considering the 58 years outstanding we estimated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 not including expenses.