With a domestic leasehold premises in Bradford On Avon, you are actually purchasing a right to live in a property for a prescribed time frame. 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 extending the lease 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 80 years remaining. Anyone in Bradford On Avon with a lease approaching 81 years left should seriously consider extending it sooner rather than later. Once a lease has fewer than eighty years remaining, under the current Act the landlord can calculate and levy a larger premium, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold properties in Bradford On Avon with over 100 years unexpired on the lease are often regarded as a ‘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 reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| Coventry Building Society | |
| Skipton Building Society | |
| TSB |
Using our service will provide you enhanced control over the value of your Bradford On Avon leasehold, as your property will be more valuable and saleable in relation to the 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.
Theo owned a conversion flat in Bradford On Avon being sold with a lease of a little over sixty years unexpired. Theo informally spoke with his landlord a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £100 per annum. No ground rent would be payable on a lease extension were Theo to invoke his statutory right. Theo obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and sell the flat.
In 2011 we were approached by Dr Lucy Thomas who, having was assigned a lease of a one bedroom flat in Bradford On Avon in November 2012. We are asked if we could shed any light on how much (roughly) price could be for a ninety year lease extension. Identical residencies in Bradford On Avon with 100 year plus lease were worth £240,600. The average ground rent payable was £60 billed every twelve months. The lease came to a finish in 2088. Given that there were 62 years remaining we calculated the premium to the freeholder for the lease extension to be within £21,900 and £25,200 not including costs.
In 2011 we were e-mailed by Ms P Vincent who, having acquired a one bedroom flat in Bradford On Avon in September 2012. The question was if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Comparable premises in Bradford On Avon with 100 year plus lease were valued around £174,200. The average ground rent payable was £55 collected every twelve months. The lease termination date was in 2077. Given that there were 51 years as a residual term we approximated the premium to the landlord to extend the lease to be between £31,400 and £36,200 plus fees.