With a domestic leasehold premises in Borough Green, you are actually buying a right to live in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should consider 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 once there are less than eighty years remaining. Leasehold owners in Borough Green with a lease nearing 81 years unexpired should seriously think of extending it as soon as possible. Once a lease has under eighty years outstanding, under the relevant Act the freeholder can calculate and charge a larger amount, based on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold premises in Borough Green with over one hundred years unexpired 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 situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Godiva Mortgages | |
| Leeds Building Society | |
| The Mortgage Works | |
| Royal Bank of Scotland |
Lease extensions in Borough Green can be a difficult process. We recommend you secure guidance from a conveyancer 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 Borough Green lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Hugo was the the leasehold owner of a conversion flat in Borough Green being marketed with a lease of a little over 72 years remaining. Hugo informally spoke with his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 annually. Ordinarily, ground rent would not be payable on a lease extension were Hugo to invoke his statutory right. Hugo obtained expert advice and secured satisfactory deal without going to tribunal and ending up with a market value flat.
In 2011 we were e-mailed by Dr S Thompson who, having owned a purpose-built apartment in Borough Green in June 2007. We are asked if we could estimate the premium would likely be to prolong the lease by a further 90 years. Identical flats in Borough Green with an extended lease were in the region of £260,000. The average ground rent payable was £50 invoiced yearly. The lease ended on 14 March 2098. Considering the 72 years left we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus legals.
Last Summer we were contacted by Mr R Davis , who purchased a basement flat in Borough Green in November 2004. We are asked if we could estimate the premium would likely be to extend the lease by an additional years. Comparative premises in Borough Green with 100 year plus lease were worth £256,600. The mid-range amount of ground rent was £60 billed yearly. The lease concluded in 2078. Given that there were 52 years left we calculated the compensation to the landlord for the lease extension to be within £39,000 and £45,000 not including legals.