When it comes to residential leasehold property in Appleton, you effectively rent it for a certain amount 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 should think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive especially once there are less than eighty years remaining. Anyone in Appleton with a lease approaching 81 years left should seriously think of extending it without delay. When a lease has fewer than 80 years outstanding, under the current statute the freeholder is entitled to calculate and demand a greater premium, based on a technical calculation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a property with over 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
|Accord Mortgages||85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower.|
|Barnsley Building Society||60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term.|
|Birmingham Midshires||Minimum 70 years from the date of the mortgage.|
|Halifax||Minimum 70 years from the date of the mortgage.|
|Skipton Building Society|| 85 years from the date of completion of the mortgage|
For Buy to Let cases:
- lettings must not breach any of the lessee’s covenants; and
- consent of the lessor to lettings must be obtained if necessary
Regardless of whether you are a tenant or a freeholder in Appleton,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Appleton valuers.
Tommy owned a conversion apartment in Appleton on the market with a lease of a few days over 61 years left. Tommy informally approached his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Tommy to exercise his statutory right. Tommy obtained expert advice and secured satisfactory resolution informally and sell the property.
Last Summer we were called by Dr Alice Kelly , who purchased a one bedroom flat in Appleton in November 2006. The question was if we could estimate the price would be for a ninety year extension to my lease. Identical homes in Appleton with 100 year plus lease were valued about £205,000. The mid-range ground rent payable was £50 billed quarterly. The lease elapsed on 8 March 2102. Taking into account 79 years outstanding we approximated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 plus professional charges.
Last Christmas we were approach by Dr Kai White , who owned a one bedroom apartment in Appleton in August 1999. The question was if we could approximate the price could be to prolong the lease by an additional years. Comparative premises in Appleton with a long lease were worth £275,000. The mid-range ground rent payable was £65 collected every twelve months. The lease termination date was on 21 February 2091. Having 68 years outstanding we estimated the premium to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of expenses.