When it comes to domestic leasehold property in Bishops Cleeve, you are actually buying an entitlement to live in a property for a set 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 may think about extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are less than eighty years remaining. Anyone in Bishops Cleeve with a lease approaching 81 years left should seriously think of extending it as soon as possible. Once a lease has under 80 years left, under the current Act the freeholder can calculate and charge a larger premium, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold properties in Bishops Cleeve with more than one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Birmingham Midshires | |
| Halifax | |
| The Mortgage Works | |
| Virgin |
The conveyancers that we work with procure Bishops Cleeve 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 conveyancing solicitor we work with provide it.
Last October Alexander, came dangerously near to the eighty-year threshold with the lease on his basement flat in Bishops Cleeve. In buying his flat two decades ago, the length of the lease was of minimal interest. by good luck, he noticed he needed to take action soon on Extending the lease. Alexander was able to extend his lease at the eleventh hour last July. Alexander and the landlord who owned the flat above in the end settled on the final figure of £5,500 . If he failed to meet the deadline, the premium would have increased by a minimum £1,050.
In 2013 we were contacted by Mr and Mrs. I Scott who, having was assigned a lease of a garden flat in Bishops Cleeve in October 2011. We are asked if we could approximate the premium would likely be to prolong the lease by a further 90 years. Similar homes in Bishops Cleeve with a long lease were valued around £218,400. The mid-range ground rent payable was £60 invoiced yearly. The lease came to a finish on 1 June 2085. Having 59 years remaining we estimated the compensation to the landlord for the lease extension to be between £27,600 and £31,800 exclusive of expenses.
Mr H Morris took over the lease of a studio flat in Bishops Cleeve in January 2009. We are asked if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Comparative properties in Bishops Cleeve with an extended lease were worth £205,000. The average ground rent payable was £50 invoiced monthly. The lease ended on 25 July 2105. Taking into account 79 years as a residual term we approximated the premium to the landlord to extend the lease to be between £7,600 and £8,800 plus expenses.