The basic rule is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Bala may extend the lease for a further 90 years under legislation. Do give careful consideration before delaying your Bala lease extension. Shelving that expense today simply escalates the amount you will ultimately have to pay for a lease extension.
Leasehold premises in Bala with over one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Leeds Building Society | |
| Skipton Building Society | |
| TSB | |
| The Mortgage Works |
The conveyancing solicitors that we work with handle Bala 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 lawyer we work with provide it.
Elijah owned a conversion apartment in Bala on the market with a lease of a few days over 61 years unexpired. Elijah on an informal basis spoke with his freeholder a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £100 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Elijah to exercise his statutory right. Elijah procured expert legal guidance and was able to make an informed decision and deal with the matter and ending up with a market value flat.
In 2009 we were e-mailed by Mr and Mrs. L Nelson who, having bought a studio flat in Bala in June 2003. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year lease extension. Comparable premises in Bala with a long lease were valued about £218,000. The mid-range amount of ground rent was £45 collected per annum. The lease ran out in 2089. Given that there were 63 years remaining we approximated the premium to the landlord to extend the lease to be between £17,100 and £19,800 plus expenses.
In 2012 we were called by Dr Chloe Laurent who, having completed a newly refurbished apartment in Bala in November 2000. The dilemma was if we could approximate the price would likely be for a 90 year extension to my lease. Comparable properties in Bala with an extended lease were in the region of £265,000. The average ground rent payable was £50 billed quarterly. The lease termination date was on 3 October 2100. Considering the 74 years left we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus costs.