When it comes to residential leasehold premises in Leighton Buzzard, you are actually purchasing 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. Many leasehold owners become complacent as this seems like a long period of time, you may think about a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are fewer than eighty years remaining. Anyone in Leighton Buzzard with a lease approaching 81 years left should seriously consider extending it sooner as opposed to later. Once a lease has below 80 years left, under the relevant statute the landlord is entitled to calculate and demand a larger premium, based on a technical computation, known as “marriage value” which is due.
Leasehold residencies in Leighton Buzzard with in excess of 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Chelsea Building Society | |
| Godiva Mortgages | |
| National Westminster Bank | |
| Virgin |
The conveyancers that we work with undertake Leighton Buzzard 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.
Last year Eliot, came precariously near to the eighty-year mark with the lease on his purpose- built flat in Leighton Buzzard. Having bought his property two decades ago, the length of the lease was of little bearing. Luckily, he became aware that he needed to take action soon on a lease extension. Eliot arranged for a lease extension at the eleventh hour last March. Eliot and the freeholder eventually settled on an amount of £5,000 . If the lease had descended below 80 years, the amount would have gone up by a minimum £975.
Last year we were called by Mrs I Jackson , who completed a studio flat in Leighton Buzzard in July 2009. We are asked if we could estimate the price would be for a ninety year lease extension. Identical residencies in Leighton Buzzard with 100 year plus lease were valued about £255,000. The mid-range amount of ground rent was £50 billed monthly. The lease expired in 2096. Given that there were 70 years remaining we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of costs.
Last Winter we were approach by Dr N Girard , who bought a one bedroom apartment in Leighton Buzzard in June 2008. The question was if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Comparative premises in Leighton Buzzard with an extended lease were valued about £246,800. The average amount of ground rent was £60 invoiced quarterly. The lease ended on 9 March 2076. Given that there were 50 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £44,700 and £51,600 plus costs.