With a long leasehold property in Arnside, you are actually purchasing an entitlement to reside in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should think about extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are fewer than eighty years remaining. Anyone in Arnside with a lease approaching 81 years left should seriously think of extending it without delay. Once a lease has less than 80 years remaining, under the current statute the freeholder is entitled to calculate and charge a greater amount, assessed on a technical multiplication, known as “marriage value” which is payable.
Leasehold properties in Arnside with in excess of one hundred years remaining 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 freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| Coventry Building Society | |
| TSB | |
| Virgin |
Retaining our service will provide you increased control over the value of your Arnside leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Ibrahim was the the leasehold owner of a conversion flat in Arnside being marketed with a lease of a few days over sixty years unexpired. Ibrahim informally approached his landlord a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £150 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Ibrahim to exercise his statutory right. Ibrahim obtained expert advice and secured satisfactory deal without resorting to tribunal and ending up with a market value flat.
In 2014 we were called by Mr and Mrs. J Morgan who, having took over the lease of a ground floor flat in Arnside in May 2010. The question was if we could estimate the premium would be to prolong the lease by a further 90 years. Identical properties in Arnside with 100 year plus lease were in the region of £205,000. The average amount of ground rent was £50 invoiced quarterly. The lease end date was on 3 January 2105. Considering the 79 years remaining we approximated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of legals.
Last October we were contacted by Mr and Mrs. H Bennett , who bought a newly refurbished flat in Arnside in July 1998. We are asked if we could shed any light on how much (roughly) price could be for a ninety year extension to my lease. Similar properties in Arnside with a long lease were worth £275,000. The mid-range amount of ground rent was £65 billed annually. The lease end date was on 23 October 2094. Given that there were 68 years remaining we calculated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 not including costs.