With a residential leasehold premises in Comberton, you effectively rent it for a certain period of time. Modern flat leases typically tend to be 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 rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately greater especially once there are less than 80 years remaining. Anyone in Comberton with a lease nearing 81 years unexpired should seriously think of extending it without delay. Once a lease has fewer than eighty years outstanding, under the relevant legislation the landlord can calculate and demand a greater premium, based on a technical computation, strangely termed as “marriage value” which is due.
Leasehold properties in Comberton with over 100 years outstanding 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 premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Leeds Building Society | |
| Nationwide Building Society | |
| Skipton Building Society | |
| Royal Bank of Scotland |
Regardless of whether you are a tenant or a freeholder in Comberton,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Comberton valuers.
Jonathan owned a high value flat in Comberton being marketed with a lease of a little over sixty years unexpired. Jonathan informally approached his freeholder being a well known London-based freehold company for a lease extension. The freeholder 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 doubled every 25 years thereafter. No ground rent would be due on a lease extension were Jonathan to exercise his statutory right. Jonathan obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and sell the property.
In 2010 we were approached by Mr and Mrs. P Morel who, having purchased a garden flat in Comberton in July 1997. The question was if we could estimate the premium would be for a ninety year lease extension. Comparable homes in Comberton with a long lease were in the region of £227,800. The average amount of ground rent was £45 collected per annum. The lease ended on 6 October 2091. Given that there were 65 years left we calculated the premium to the landlord to extend the lease to be between £13,300 and £15,400 plus fees.
Mr P Díaz bought a purpose-built apartment in Comberton in July 2003. The dilemma was if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Similar properties in Comberton with a long lease were in the region of £275,000. The average amount of ground rent was £55 billed per annum. The lease lapsed in 2102. Taking into account 76 years unexpired we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of expenses.