With a residential leasehold premises in Bitterne, you effectively rent it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are less than 80 years left. Residents in Bitterne with a lease nearing 81 years unexpired should seriously consider extending it without delay. Once a lease has under eighty years outstanding, under the relevant statute the freeholder is entitled to calculate and charge a larger premium, based on a technical multiplication, known as “marriage value” which is due.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | |
| Coventry Building Society | |
| Halifax | |
| Nationwide Building Society | |
| TSB |
Irrespective of whether you are a tenant or a landlord in Bitterne,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Bitterne valuers.
Samuel owned a high value apartment in Bitterne on the market with a lease of fraction over 59 years unexpired. Samuel on an informal basis contacted his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £100 yearly. Ordinarily, ground rent would not be due on a lease extension were Samuel to invoke his statutory right. Samuel procured expert advice and was able to make a more informed judgement and handle with the matter and sell the property.
Mr and Mrs. U Gray completed a one bedroom flat in Bitterne in June 2010. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year lease extension. Comparable residencies in Bitterne with 100 year plus lease were worth £275,000. The average ground rent payable was £55 billed quarterly. The lease elapsed in 2102. Given that there were 76 years outstanding we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including costs.
In 2009 we were phoned by Mr and Mrs. P James who, having was assigned a lease of a purpose-built flat in Bitterne in April 1998. We are asked if we could approximate the price would likely be to extend the lease by an additional years. Comparative properties in Bitterne with 100 year plus lease were worth £176,200. The average amount of ground rent was £65 billed every twelve months. The lease finished on 2 August 2082. Given that there were 56 years remaining we calculated the premium to the landlord for the lease extension to be within £29,500 and £34,000 plus legals.