When it comes to domestic leasehold property in Curdworth, you are actually buying an entitlement to reside in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should consider a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are less than eighty years left. Residents in Curdworth with a lease approaching 81 years left should seriously think of extending it sooner rather than later. Once a lease has under eighty years outstanding, under the current legislation the landlord is entitled to calculate and levy a larger premium, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
The lawyers that we work with procure Curdworth 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 lawyer we work with provide it.
During the course of the last few months Joshua, started to get near to the 80-year threshold with the lease on his studio flat in Curdworth. Having purchased his property two decades ago, the length of the lease was of little concern. As luck would have it, he realised he would soon be paying an escalated premium for a lease extension. Joshua was able to extend his lease at the eleventh hour in June. Joshua and the landlord eventually settled on sum of £5,500 . If the lease had fallen to less than 80 years, the price would have become more costly by at least £1,000.
Last Autumn we were called by Dr Callum Sharif , who owned a ground floor apartment in Curdworth in June 2010. The question was if we could approximate the compensation to the landlord would be to extend the lease by 90 years. Comparable homes in Curdworth with an extended lease were in the region of £240,600. The average ground rent payable was £60 collected every twelve months. The lease concluded in 2088. Considering the 62 years remaining we estimated the compensation to the landlord for the lease extension to be within £21,900 and £25,200 plus professional charges.
Mrs D Brown acquired a purpose-built apartment in Curdworth in April 2010. We are asked if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Comparable residencies in Curdworth with an extended lease were worth £174,200. The average amount of ground rent was £55 collected quarterly. The lease terminated in 2077. Given that there were 51 years left we estimated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 not including costs.