With a domestic leasehold premises in Castle Donington, you are actually buying a right to live in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should 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 gets disproportionately greater particularly once there are fewer than 80 years remaining. Leasehold owners in Castle Donington with a lease approaching 81 years remaining should seriously think of extending it sooner rather than later. Once the lease term has less than eighty years outstanding, under the relevant Act the landlord is entitled to calculate and charge a larger amount, based on a technical calculation, strangely termed as “marriage value” which is due.
Leasehold properties in Castle Donington with in excess of one hundred years remaining 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 reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Leeds Building Society | |
| Santander | |
| Skipton Building Society | |
| Virgin | |
| Yorkshire Building Society |
Lease extensions in Castle Donington can be a difficult process. We recommend you get guidance from a conveyancer and surveyor 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 a wealth of experience dealing with Castle Donington lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Aarav, came seriously close to the eighty-year threshold with the lease on his two bedroom flat in Castle Donington. Having purchased his property 18 years ago, the length of the lease was of no significance. by good luck, he noticed he needed to take steps soon on a lease extension. Aarav arranged for a lease extension just in the nick of time last April. Aarav and the freeholder eventually settled on an amount of £5,000 . If the lease had dipped below 80 years, the premium would have gone up by a minimum £950.
Mr and Mrs. I Morgan purchased a purpose-built flat in Castle Donington in October 2008. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by ninety years. Comparable homes in Castle Donington with a long lease were valued about £225,800. The mid-range ground rent payable was £60 collected annually. The lease terminated in 2086. Given that there were 60 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £23,800 and £27,400 not including fees.
Ms Jessica Edwards was assigned a lease of a purpose-built flat in Castle Donington in July 1995. The question was if we could approximate the compensation to the landlord would be to extend the lease by ninety years. Similar homes in Castle Donington with a long lease were in the region of £210,000. The mid-range ground rent payable was £50 billed annually. The lease expiry date was in 2106. Considering the 80 years as a residual term we estimated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including legals.