With a residential leasehold premises in Rowen, you are actually buying an entitlement to reside in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially once there are fewer than 80 years remaining. Anyone in Rowen with a lease nearing 81 years unexpired should seriously think of extending it without delay. When the lease term has under 80 years remaining, under the relevant statute the landlord can calculate and levy a greater premium, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
It is generally considered that a property with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years left, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barclays plc | |
| Barnsley Building Society | |
| TSB | |
| Royal Bank of Scotland |
Engaging our service will provide you better control over the value of your Rowen leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Finn owned a high value flat in Rowen being sold with a lease of a few days over sixty years remaining. Finn on an informal basis approached his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 annually. No ground rent would be payable on a lease extension were Finn to invoke his statutory right. Finn obtained expert advice and secured satisfactory deal informally and ending up with a market value flat.
In 2012 we were phoned by Mr and Mrs. S Bell who, having acquired a basement flat in Rowen in March 1996. The dilemma was if we could approximate the price would be to prolong the lease by 90 years. Comparable properties in Rowen with 100 year plus lease were worth £300,000. The mid-range ground rent payable was £50 collected quarterly. The lease lapsed in 2101. Having 75 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of costs.
Last March we were phoned by Mr and Mrs. K Hill , who owned a studio flat in Rowen in November 1998. The question was if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Identical premises in Rowen with an extended lease were valued about £252,800. The mid-range amount of ground rent was £65 collected quarterly. The lease lapsed on 10 September 2091. Taking into account 65 years left we estimated the compensation to the freeholder for the lease extension to be within £18,100 and £20,800 exclusive of fees.