With a residential leasehold premises in Bembridge, you are actually buying an entitlement to reside in a property for a set period of time. In recent years 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 a lease extension 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 greater especially once there are fewer than eighty years left. Residents in Bembridge with a lease approaching 81 years remaining should seriously consider extending it as soon as possible. When a lease has below eighty years left, under the current statute the landlord is entitled to calculate and levy a greater premium, based on a technical multiplication, known as “marriage value” which is payable.
It is generally accepted that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Halifax | |
| Leeds Building Society | |
| Virgin | |
| Yorkshire Building Society |
Lease extensions in Bembridge can be a difficult process. We recommend you procure guidance from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Bembridge lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Stanley, came critically close to the 80-year mark with the lease on his leasehold flat in Bembridge. Having purchased his flat twenty years previously, the lease term was of little interest. As luck would have it, he realised he needed to take action soon on Extending the lease. Stanley extended the lease just under the wire last January. Stanley and the landlord who owned the flat above in the end settled on sum of £6,000 . If he failed to meet the deadline, the sum would have escalated by a minimum £900.
In 2012 we were phoned by Dr G Wilson who, having owned a newly refurbished flat in Bembridge in March 1996. The question was if we could approximate the price would be to extend the lease by ninety years. Comparative flats in Bembridge with 100 year plus lease were valued around £248,000. The mid-range ground rent payable was £65 invoiced quarterly. The lease concluded in 2089. Given that there were 63 years remaining we approximated the premium to the landlord for the lease extension to be between £20,900 and £24,200 not including fees.
In 2010 we were called by Ms A Walker who, having moved into a studio flat in Bembridge in May 2006. The dilemma was if we could shed any light on how much (roughly) price would be to prolong the lease by a further 90 years. Identical flats in Bembridge with 100 year plus lease were valued around £181,600. The mid-range ground rent payable was £55 invoiced quarterly. The lease lapsed in 2078. Having 52 years left we estimated the compensation to the landlord to extend the lease to be within £30,400 and £35,200 not including expenses.