With a residential leasehold property in Abbots Bromley, you are in fact renting it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may think about extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive notably once there are fewer than 80 years left. Leasehold owners in Abbots Bromley with a lease drawing near to 81 years remaining should seriously consider extending it sooner than later. Once a lease has below eighty years outstanding, under the current statute the landlord can calculate and levy a greater premium, based on a technical multiplication, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Halifax | |
| Nationwide Building Society | |
| Skipton Building Society | |
| Royal Bank of Scotland |
Engaging our service will provide you enhanced control over the value of your Abbots Bromley leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Mason owned a studio flat in Abbots Bromley on the market with a lease of fraction over 61 years outstanding. Mason informally contacted his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 per annum. Ordinarily, ground rent would not be payable on a lease extension were Mason to exercise his statutory right. Mason procured expert advice and secured satisfactory resolution informally and sell the property.
In 2010 we were phoned by Dr Y Vincent who, having completed a studio apartment in Abbots Bromley in February 2011. We are asked if we could approximate the premium would likely be for a ninety year lease extension. Comparable properties in Abbots Bromley with 100 year plus lease were in the region of £216,000. The average amount of ground rent was £60 invoiced per annum. The lease ended in 2084. Considering the 58 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 plus fees.
Last March we were contacted by Dr R Cook , who moved into a studio apartment in Abbots Bromley in May 2003. We are asked if we could shed any light on how much (approximately) premium could be for a 90 year extension to my lease. Comparable flats in Abbots Bromley with 100 year plus lease were worth £200,000. The mid-range ground rent payable was £50 collected monthly. The lease elapsed in 2104. Given that there were 78 years left we estimated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of expenses.