When it comes to residential leasehold premises in Bishops Cleeve, you are in fact renting it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned 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 number of years is the cost of extending the lease gets disproportionately more expensive especially when there are fewer than eighty years remaining. Leasehold owners in Bishops Cleeve with a lease approaching 81 years left should seriously think of extending it as soon as possible. When the lease term has below eighty years remaining, under the relevant legislation the landlord can calculate and demand a greater premium, assessed on a technical computation, known as “marriage value” which is due.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Chelsea Building Society | |
| Godiva Mortgages | |
| Skipton Building Society | |
| Yorkshire Building Society |
Irrespective of whether you are a tenant or a landlord in Bishops Cleeve,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Bishops Cleeve valuers.
During the course of the last few months Cameron, started to get close to the eighty-year mark with the lease on his garden apartment in Bishops Cleeve. Having purchased his home two decades ago, the length of the lease was of little importance. Fortunately, he noticed he would soon be paying an inflated amount for Extending the lease. Cameron was able to extend his lease just under the wire in August. Cameron and the freeholder eventually settled on an amount of £6,000 . If he not met the deadline, the premium would have escalated by at least £1,150.
Dr Ben Thompson acquired a first floor apartment in Bishops Cleeve in May 1997. We are asked if we could estimate the price would be for a ninety year extension to my lease. Similar properties in Bishops Cleeve with an extended lease were worth £295,000. The mid-range ground rent payable was £45 collected annually. The lease terminated on 23 April 2101. Considering the 75 years unexpired we calculated the premium to the landlord for the lease extension to be within £8,600 and £9,800 plus legals.
Last Spring we were approach by Mr and Mrs. S Martinez , who bought a purpose-built apartment in Bishops Cleeve in November 2012. We are asked if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Identical homes in Bishops Cleeve with an extended lease were valued about £250,400. The average ground rent payable was £65 collected yearly. The lease ended in 2090. Given that there were 64 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £19,000 and £22,000 exclusive of expenses.