When it comes to domestic leasehold premises in Chinnor, you are actually buying an entitlement to reside in a property for a prescribed time frame. Modern 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 may think about a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive notably when there are less than eighty years remaining. Leasehold owners in Chinnor with a lease approaching 81 years remaining should seriously consider extending it sooner rather than later. Once the lease term has under eighty years left, under the current statute the landlord can calculate and charge a greater premium, based on a technical computation, known as “marriage value” which is due.
Leasehold premises in Chinnor with more than one hundred years outstanding 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 property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Santander | |
| Skipton Building Society | |
| Virgin | |
| Yorkshire Building Society |
The lawyers that we work with handle Chinnor 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 conveyancing solicitor we work with provide it.
Trailing unsuccessful negotiations with the landlord of her studio apartment in Chinnor, Rhiannon commenced the lease extension process as the eighty year threshold was swiftly coming. The transaction completed in September 2015. The freeholder’s fees were kept to an absolute minimum.
Last month we were contacted by Mr K Lambert , who completed a purpose-built flat in Chinnor in October 1997. We are asked if we could shed any light on how much (roughly) price could be to extend the lease by a further 90 years. Identical residencies in Chinnor with an extended lease were valued around £295,000. The mid-range amount of ground rent was £45 billed yearly. The lease concluded in 2100. Taking into account 74 years left we approximated the premium to the landlord to extend the lease to be between £8,600 and £9,800 plus professional charges.
Dr Jackson Allen took over the lease of a first floor flat in Chinnor in February 1997. We are asked if we could approximate the compensation to the landlord could be to extend the lease by an additional years. Comparable residencies in Chinnor with an extended lease were worth £248,000. The average ground rent payable was £65 billed per annum. The lease came to a finish in 2089. Given that there were 63 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £20,900 and £24,200 plus legals.