With a long leasehold premises in Common Edge, you are actually purchasing a right to live in a property for a prescribed time frame. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should think about 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 especially when there are less than 80 years remaining. Anyone in Common Edge with a lease drawing near to 81 years remaining should seriously think of extending it without delay. Once a lease has fewer than eighty years remaining, under the relevant statute the freeholder is entitled to calculate and demand a larger premium, assessed on a technical computation, strangely termed as “marriage value” which is due.
Leasehold properties in Common Edge with over 100 years unexpired 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 premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Chelsea Building Society | |
| Halifax | |
| Skipton Building Society | |
| Yorkshire Building Society |
The conveyancing solicitors that we work with undertake Common Edge 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.
16 months ago Harrison, started to get close to the eighty-year mark with the lease on his basement apartment in Common Edge. In buying his property two decades ago, the unexpired term was of minimal significance. Fortunately, he realised he would soon be paying an inflated amount for a lease extension. Harrison extended the lease just in the nick of time in June. Harrison and the freeholder via the managing agents eventually agreed on the final figure of £5,000 . If the lease had descended lower than eighty years, the amount would have gone up by a minimum £1,050.
Last Autumn we were approach by Mr G Rodríguez , who owned a ground floor flat in Common Edge in September 1995. We are asked if we could approximate the price could be to prolong the lease by an additional years. Similar premises in Common Edge with a long lease were valued around £168,800. The mid-range ground rent payable was £60 billed quarterly. The lease ran out on 17 July 2081. Given that there were 55 years outstanding we calculated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 plus fees.
Last year we were called by Dr Alice Cox , who moved into a one bedroom flat in Common Edge in November 2011. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by an additional years. Similar premises in Common Edge with 100 year plus lease were valued about £235,200. The mid-range ground rent payable was £45 collected every twelve months. The lease expiry date was in 2092. Given that there were 66 years as a residual term we calculated the premium to the landlord for the lease extension to be within £12,400 and £14,200 not including fees.