When it comes to domestic leasehold property in Moor Row, you are actually purchasing an entitlement to live in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may consider extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately greater especially once there are less than eighty years remaining. Leasehold owners in Moor Row with a lease approaching 81 years left should seriously consider extending it without delay. Once the lease term has fewer than eighty years remaining, under the current Act the landlord can calculate and charge a larger premium, based on a technical computation, known as “marriage value” which is due.
Leasehold premises in Moor Row with over 100 years remaining 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 to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Coventry Building Society | |
| Santander | |
| Skipton Building Society | |
| Virgin |
The lawyers that we work with undertake Moor Row 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.
After protracted discussions with the landlord of her ground floor apartment in Moor Row, Rachel started the lease extension process as the 80 year deadline was quickly coming. The lease extension was concluded in June 2010. The landlord’s charges were kept to an absolute minimum.
Mr A Ward completed a garden flat in Moor Row in August 2007. The question was if we could estimate the price would likely be to extend the lease by 90 years. Similar residencies in Moor Row with 100 year plus lease were in the region of £210,000. The mid-range amount of ground rent was £50 invoiced quarterly. The lease termination date was on 13 August 2106. Given that there were 80 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of legals.
Dr Grace Allen acquired a garden flat in Moor Row in February 1995. We are asked if we could shed any light on how much (approximately) price would be to prolong the lease by ninety years. Identical flats in Moor Row with an extended lease were valued around £275,000. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease expired on 27 June 2095. Considering the 69 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of costs.