With a domestic leasehold premises in Cullercoats, you are actually purchasing a right to reside in a property for a prescribed time frame. These days 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 think about a lease extension sooner rather than 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 Cullercoats with a lease drawing near to 81 years unexpired should seriously consider extending it as soon as possible. When a lease has under 80 years left, under the relevant Act the landlord is entitled to calculate and charge a greater amount, based on a technical multiplication, known as “marriage value” which is payable.
It is generally accepted that a property with more than one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Coventry Building Society | |
| Nationwide Building Society | |
| Skipton Building Society | |
| The Mortgage Works | |
| Royal Bank of Scotland |
Regardless of whether you are a tenant or a freeholder in Cullercoats,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Cullercoats valuers.
Zachary was the the leasehold proprietor of a 2 bedroom apartment in Cullercoats being sold with a lease of a little over sixty years left. Zachary informally approached his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 per annum. Ordinarily, ground rent would not be due on a lease extension were Zachary to exercise his statutory right. Zachary obtained expert legal guidance and secured an acceptable deal informally and ending up with a market value flat.
Dr William Lefèvre acquired a one bedroom flat in Cullercoats in January 2007. We are asked if we could shed any light on how much (approximately) price would likely be to extend the lease by a further 90 years. Similar homes in Cullercoats with an extended lease were valued about £200,000. The average ground rent payable was £50 billed monthly. The lease came to a finish on 7 June 2103. Considering the 77 years unexpired we estimated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of professional charges.
Mrs H Wright owned a basement apartment in Cullercoats in June 2001. The dilemma was if we could approximate the price would likely be to extend the lease by 90 years. Comparable premises in Cullercoats with a long lease were in the region of £260,200. The mid-range amount of ground rent was £65 collected every twelve months. The lease came to a finish on 24 May 2092. Having 66 years remaining we estimated the premium to the freeholder to extend the lease to be between £15,200 and £17,600 plus costs.