When it comes to residential leasehold property in Fenstanton, you are actually buying an entitlement to live in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive especially once there are less than 80 years remaining. Residents in Fenstanton with a lease nearing 81 years left should seriously think of extending it as soon as possible. When the lease term has fewer than 80 years outstanding, under the current Act the landlord is entitled to calculate and charge a greater premium, based on a technical computation, known as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Godiva Mortgages | |
| TSB | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
Irrespective of whether you are a tenant or a freeholder in Fenstanton,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 Fenstanton valuers.
John was the the leasehold owner of a 2 bedroom flat in Fenstanton being marketed with a lease of just over sixty years remaining. John informally approached his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 annually. No ground rent would be payable on a lease extension were John to exercise his statutory right. John obtained expert advice and was able to make an informed decision and handle with the matter and ending up with a market value flat.
In 2010 we were e-mailed by Mr and Mrs. E Davies who, having was assigned a lease of a one bedroom flat in Fenstanton in March 2004. The question was if we could shed any light on how much (approximately) premium would likely be to extend the lease by 90 years. Identical flats in Fenstanton with a long lease were valued around £254,200. The average amount of ground rent was £60 invoiced yearly. The lease expiry date was on 10 November 2077. Given that there were 51 years outstanding we estimated the compensation to the landlord to extend the lease to be within £43,700 and £50,600 plus costs.
Last year we were phoned by Ms Natalie Phillips , who owned a basement flat in Fenstanton in September 2010. The dilemma was if we could approximate the premium would likely be for a ninety year lease extension. Similar premises in Fenstanton with a long lease were worth £210,600. The average ground rent payable was £45 billed annually. The lease elapsed on 10 September 2088. Given that there were 62 years outstanding we estimated the premium to the landlord to extend the lease to be between £18,100 and £20,800 exclusive of fees.