With a residential leasehold property in Birchgrove, you are actually buying an entitlement to reside in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are fewer than eighty years left. Anyone in Birchgrove with a lease nearing 81 years remaining should seriously consider extending it as soon as possible. When the lease term has under 80 years outstanding, under the current legislation the landlord can calculate and levy a greater amount, assessed on a technical computation, known as “marriage value” which is payable.
Leasehold premises in Birchgrove with over one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| Godiva Mortgages | |
| Halifax | |
| Skipton Building Society |
Lease extensions in Birchgrove can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and surveyor 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 dealing with Birchgrove lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 9 months of lengthy negotiations with the landlord of her ground floor flat in Birchgrove, Jessica started the lease extension process as the eighty year threshold was fast nearing. The transaction was concluded in February 2014. The freeholder’s costs were negotiated to a tad over 700 pounds.
Ms Laura James was assigned a lease of a newly refurbished flat in Birchgrove in May 2002. The question was if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by ninety years. Comparable flats in Birchgrove with an extended lease were in the region of £300,000. The mid-range amount of ground rent was £50 collected per annum. The lease ran out in 2102. Having 76 years outstanding we approximated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of legals.
Last Summer we were approach by Dr M Campbell , who was assigned a lease of a one bedroom apartment in Birchgrove in March 2001. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year lease extension. Comparable flats in Birchgrove with an extended lease were valued around £257,800. The average amount of ground rent was £65 billed annually. The lease elapsed in 2091. Having 65 years remaining we calculated the compensation to the freeholder to extend the lease to be within £18,100 and £20,800 exclusive of costs.