When it comes to residential leasehold property in Cleethorpes, you effectively rent it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are fewer than 80 years left. Leasehold owners in Cleethorpes with a lease drawing near to 81 years left should seriously think of extending it sooner rather than later. Once the lease term has fewer than 80 years remaining, under the current statute the landlord can calculate and charge a greater amount, based on a technical calculation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Chelsea Building Society | |
| Halifax | |
| Skipton Building Society | |
| Yorkshire Building Society |
The conveyancing solicitors that we work with procure Cleethorpes 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.
Off the back of unsuccessful negotiations with the landlord of her first floor flat in Cleethorpes, Laura initiated the lease extension process as the 80 year threshold was fast advancing. The transaction was finalised in August 2008. The freeholder’s costs were restricted to below 500 pounds.
Last year we were contacted by Dr K Roberts , who took over the lease of a studio apartment in Cleethorpes in November 2006. We are asked if we could estimate the premium could be to extend the lease by an additional years. Identical properties in Cleethorpes with a long lease were in the region of £255,000. The average amount of ground rent was £50 billed every twelve months. The lease concluded in 2097. Considering the 71 years outstanding we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.
In 2011 we were contacted by Ms Mia Martin who, having owned a basement flat in Cleethorpes in October 2002. We are asked if we could approximate the price would likely be for a 90 year lease extension. Comparable premises in Cleethorpes with 100 year plus lease were worth £254,200. The average amount of ground rent was £60 billed annually. The lease finished on 12 June 2077. Taking into account 51 years outstanding we calculated the premium to the freeholder to extend the lease to be within £43,700 and £50,600 exclusive of professional charges.