When it comes to domestic leasehold premises in Baguley, you effectively rent it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive particularly once there are fewer than 80 years left. Anyone in Baguley with a lease drawing near to 81 years unexpired should seriously consider extending it without delay. When a lease has below eighty years left, under the current legislation the landlord is entitled to calculate and charge a greater premium, based on a technical multiplication, known as “marriage value” which is due.
It is generally considered that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barnsley Building Society | |
| Leeds Building Society | |
| National Westminster Bank | |
| Skipton Building Society |
The conveyancing solicitors that we work with undertake Baguley 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.
Matthew owned a high value apartment in Baguley on the market with a lease of just over 61 years left. Matthew informally approached his landlord being a well known local-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 £50 annually. Ordinarily, ground rent would not be payable on a lease extension were Matthew to invoke his statutory right. Matthew obtained expert advice and secured an acceptable deal informally and sell the property.
Last Christmas we were approach by Ms Poppy Jackson , who took over the lease of a garden flat in Baguley in January 2010. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Identical flats in Baguley with a long lease were worth £250,400. The mid-range amount of ground rent was £65 collected yearly. The lease finished on 9 February 2090. Taking into account 64 years unexpired we calculated the premium to the freeholder for the lease extension to be within £19,000 and £22,000 plus expenses.
Ms N Alexander completed a newly refurbished apartment in Baguley in September 2002. We are asked if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Comparative residencies in Baguley with 100 year plus lease were valued around £184,000. The average ground rent payable was £55 invoiced yearly. The lease expired in 2079. Having 53 years remaining we estimated the premium to the landlord for the lease extension to be between £28,500 and £33,000 plus costs.