With a long leasehold premises in Bursledon, you are actually purchasing a right to reside in a property for a set period of time. In recent years 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. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive notably when there are less than eighty years remaining. Anyone in Bursledon with a lease drawing near to 81 years remaining should seriously consider extending it without delay. When the lease term has under eighty years outstanding, under the relevant Act the landlord can calculate and levy a greater premium, based on a technical multiplication, known as “marriage value” which is due.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Birmingham Midshires | |
| Coventry Building Society | |
| Nationwide Building Society | |
| Skipton Building Society |
Irrespective of whether you are a tenant or a freeholder in Bursledon,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Bursledon valuers.
Off the back of protracted negotiations with the landlord of her first floor flat in Bursledon, Amber commenced the lease extension process just as her lease was nearing the crucial 80-year threshold. The transaction was concluded in September 2006. The freeholder’s charges were kept to an absolute minimum.
In 2009 we were phoned by Dr J Gray who, having was assigned a lease of a purpose-built flat in Bursledon in April 2004. We are asked if we could approximate the premium would be to prolong the lease by 90 years. Comparable homes in Bursledon with a long lease were worth £285,000. The mid-range amount of ground rent was £45 billed every twelve months. The lease lapsed in 2098. Having 72 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of costs.
In 2014 we were e-mailed by Ms S King who, having purchased a garden flat in Bursledon in March 2011. The dilemma was if we could estimate the premium could be for a 90 year lease extension. Comparative properties in Bursledon with a long lease were valued about £233,200. The average amount of ground rent was £60 billed monthly. The lease ended on 2 September 2087. Given that there were 61 years left we estimated the compensation to the freeholder to extend the lease to be within £22,800 and £26,400 exclusive of legals.