Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will normally be granted for a fixed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Countesthorpe. Clearly, the period of lease remaining reduces as time goes by. This may slip by relatively unnoticed when the residence needs to be disposed of or re-mortgaged. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease. Qualifying leaseholders in Countesthorpe have the right to extend the lease for a further 90 years in accordance with the 1993 Leasehold Reform Act. Do give careful consideration before putting off your Countesthorpe lease extension. Putting off the cost now only increases the price you will ultimately incur to extend your lease
It is conventional wisdom that a property with more than 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barnsley Building Society | |
| Godiva Mortgages | |
| Royal Bank of Scotland | |
| Virgin |
The conveyancing solicitors that we work with undertake Countesthorpe 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.
Cameron was the the leasehold proprietor of a studio flat in Countesthorpe being marketed with a lease of a few days over 72 years unexpired. Cameron informally approached his landlord being a well known Bristol-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Cameron to exercise his statutory right. Cameron obtained expert legal guidance and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
Last Summer we were called by Dr G García , who purchased a recently refurbished flat in Countesthorpe in July 2006. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by 90 years. Comparable flats in Countesthorpe with an extended lease were valued about £233,200. The mid-range amount of ground rent was £60 billed yearly. The lease finished on 26 November 2087. Considering the 61 years unexpired we calculated the compensation to the landlord for the lease extension to be between £22,800 and £26,400 not including fees.
Last month we were e-mailed by Mr Finn Walker , who owned a purpose-built apartment in Countesthorpe in October 2004. We are asked if we could estimate the price could be to prolong the lease by 90 years. Comparable premises in Countesthorpe with an extended lease were worth £171,800. The mid-range ground rent payable was £55 invoiced yearly. The lease elapsed in 2076. Considering the 50 years unexpired we estimated the premium to the landlord for the lease extension to be within £32,300 and £37,400 exclusive of professional charges.