With a residential leasehold premises in Bollington, you are in fact renting it for a certain period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive especially when there are less than eighty years left. Leasehold owners in Bollington with a lease approaching 81 years unexpired should seriously consider extending it sooner than later. When a lease has under eighty years outstanding, under the current statute the landlord is entitled to calculate and charge a larger premium, based on a technical calculation, strangely termed as “marriage value” which is due.
Leasehold premises in Bollington with in excess of 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | |
| Godiva Mortgages | |
| National Westminster Bank | |
| TSB | |
| Royal Bank of Scotland |
The conveyancing solicitors that we work with handle Bollington 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.
Half a year ago Jake, started to get close to the 80-year mark with the lease on his first floor apartment in Bollington. Having bought his flat 19 years ago, the length of the lease was of little relevance. Fortunately, it dawned on him that he needed to take steps soon on Extending the lease. Jake extended the lease at the eleventh hour last August. Jake and the landlord who owned the flat above ultimately agreed on a premium of £5,000 . If he had missed the deadline, the sum would have escalated by at least £1,100.
In 2013 we were called by Dr B Hall who, having completed a first floor apartment in Bollington in June 2007. We are asked if we could approximate the price could be to extend the lease by a further 90 years. Comparable homes in Bollington with an extended lease were in the region of £300,000. The mid-range ground rent payable was £50 billed every twelve months. The lease ended in 2102. Considering the 76 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 plus costs.
Last Winter we were e-mailed by Ms Hollie Miller , who moved into a garden apartment in Bollington in June 1997. We are asked if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Similar homes in Bollington with 100 year plus lease were worth £257,800. The average amount of ground rent was £65 billed per annum. The lease termination date was in 2091. Having 65 years remaining we calculated the premium to the freeholder to extend the lease to be between £18,100 and £20,800 plus fees.