When it comes to residential leasehold property in Binfield, you effectively rent it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may 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 more expensive especially when there are less than eighty years remaining. Leasehold owners in Binfield with a lease approaching 81 years left should seriously consider extending it as soon as possible. Once a lease has under 80 years outstanding, under the relevant statute the landlord can calculate and demand a greater amount, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Coventry Building Society | |
| Nationwide Building Society | |
| TSB | |
| Royal Bank of Scotland | |
| Virgin |
Retaining our service will provide you enhanced control over the value of your Binfield leasehold, as your property will be more valuable and saleable 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.
Jude owned a 2 bedroom flat in Binfield being sold with a lease of fraction over 61 years remaining. Jude on an informal basis approached his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £50 annually. No ground rent would be payable on a lease extension were Jude to invoke his statutory right. Jude procured expert advice and was able to make an informed decision and deal with the matter and sell the flat.
In 2009 we were phoned by Mrs Rebecca Sánchez who, having moved into a purpose-built apartment in Binfield in October 2011. We are asked if we could estimate the price would likely be to prolong the lease by 90 years. Comparative homes in Binfield with 100 year plus lease were worth £191,400. The mid-range ground rent payable was £55 collected annually. The lease terminated in 2080. Having 54 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £34,200 and £39,600 not including expenses.
Last year we were called by Mr and Mrs. V Hall , who bought a garden flat in Binfield in September 1996. The question was if we could estimate the price would be for a 90 year lease extension. Comparable premises in Binfield with 100 year plus lease were valued about £295,000. The average amount of ground rent was £45 billed yearly. The lease elapsed in 2100. Given that there were 74 years as a residual term we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.