With a residential leasehold property in Castle Eden, you are actually purchasing 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 extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive notably when there are less than eighty years remaining. Residents in Castle Eden with a lease nearing 81 years remaining should seriously consider extending it as soon as possible. Once the lease term has under 80 years remaining, under the relevant legislation the landlord can calculate and demand a larger premium, assessed on a technical computation, strangely termed as “marriage value” which is due.
Leasehold premises in Castle Eden with over 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Chelsea Building Society | |
| Halifax | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
The conveyancers that we work with undertake Castle Eden 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 conveyancer we work with provide it.
Muhammad owned a studio apartment in Castle Eden on the market with a lease of a little over fifty eight years unexpired. Muhammad on an informal basis spoke with his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 annually. No ground rent would be payable on a lease extension were Muhammad to exercise his statutory right. Muhammad procured expert advice and secured an acceptable resolution without resorting to tribunal and ending up with a market value flat.
In 2011 we were contacted by Mr and Mrs. O Thompson who, having moved into a purpose-built flat in Castle Eden in August 1996. The dilemma was if we could shed any light on how much (roughly) price would likely be to prolong the lease by a further 90 years. Similar residencies in Castle Eden with 100 year plus lease were in the region of £186,000. The average amount of ground rent was £65 billed annually. The lease came to a finish in 2084. Taking into account 58 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £24,700 and £28,600 not including legals.
In 2009 we were approached by Mr Toby Rivera who, having moved into a one bedroom apartment in Castle Eden in September 2000. The dilemma was if we could estimate the price would likely be to extend the lease by a further 90 years. Comparable premises in Castle Eden with 100 year plus lease were worth £250,000. The average ground rent payable was £50 collected annually. The lease expired in 2095. Considering the 69 years outstanding we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus costs.