With a domestic leasehold property in Braunton, you effectively rent it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may think about extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater especially once there are fewer than eighty years remaining. Residents in Braunton with a lease nearing 81 years unexpired should seriously consider extending it without delay. Once the lease term has fewer than 80 years outstanding, under the relevant Act the freeholder can calculate and charge a larger premium, based on a technical computation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a property with more than 100 years remaining 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 in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barnsley Building Society | |
| Godiva Mortgages | |
| Skipton Building Society | |
| TSB |
The conveyancing solicitors that we work with procure Braunton lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
In 2014 Eliot, started to get near to the eighty-year threshold with the lease on his ground floor flat in Braunton. Having purchased his home two decades ago, the lease term was of no relevance. Thankfully, he became aware that he needed to take steps soon on a lease extension. Eliot arranged for a lease extension just in the nick of time in August. Eliot and the freeholder in the end settled on a premium of £5,000 . If he had missed the deadline, the amount would have escalated by at least £1,150.
Last year we were contacted by Mr Gabriel Bonnet , who bought a newly refurbished apartment in Braunton in November 2007. The dilemma was if we could estimate the price would likely be to prolong the lease by an additional years. Comparable premises in Braunton with an extended lease were valued about £174,200. The average ground rent payable was £55 collected yearly. The lease concluded on 8 June 2077. Taking into account 51 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 exclusive of fees.
Mr and Mrs. V Davis purchased a basement apartment in Braunton in April 1997. We are asked if we could approximate the premium would likely be for a 90 year lease extension. Comparative homes in Braunton with a long lease were worth £285,000. The average ground rent payable was £45 invoiced yearly. The lease ran out in 2097. Taking into account 71 years unexpired we estimated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 plus costs.