When it comes to domestic leasehold premises in Cawthorne, you effectively rent it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may consider a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately greater particularly when there are fewer than 80 years left. Leasehold owners in Cawthorne with a lease approaching 81 years remaining should seriously think of extending it as soon as possible. When a lease has below 80 years remaining, under the current legislation the freeholder can calculate and demand a larger premium, based on a technical computation, known as “marriage value” which is payable.
Leasehold residencies in Cawthorne with in excess of 100 years left on the lease are sometimes regarded as a ‘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 upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barclays plc | |
| Coventry Building Society | |
| National Westminster Bank | |
| Royal Bank of Scotland |
Engaging our service gives you increased control over the value of your Cawthorne leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Leon was the the leasehold owner of a high value flat in Cawthorne being marketed with a lease of fraction over fifty eight years left. Leon informally approached his landlord a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £100 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Leon to exercise his statutory right. Leon obtained expert advice and secured satisfactory resolution without resorting to tribunal and readily saleable.
In 2013 we were contacted by Mr D Anderson who, having purchased a garden apartment in Cawthorne in April 2007. The question was if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by a further 90 years. Identical homes in Cawthorne with 100 year plus lease were worth £275,000. The mid-range amount of ground rent was £55 invoiced quarterly. The lease terminated on 17 July 2102. Taking into account 76 years remaining we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus fees.
Last Spring we were contacted by Ms Natasha Bernard , who took over the lease of a one bedroom apartment in Cawthorne in April 2007. We are asked if we could estimate the premium would likely be for a ninety year lease extension. Comparable flats in Cawthorne with an extended lease were valued around £176,200. The average amount of ground rent was £65 invoiced annually. The lease finished on 6 August 2082. Taking into account 56 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £29,500 and £34,000 plus legals.