When it comes to residential leasehold premises in Darnall, you are actually buying an entitlement 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 should think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive especially when there are fewer than 80 years remaining. Anyone in Darnall with a lease approaching 81 years remaining should seriously consider extending it without delay. When a lease has below 80 years remaining, under the current legislation the landlord can calculate and levy a larger premium, assessed on a technical computation, known as “marriage value” which is payable.
It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Birmingham Midshires | |
| Chelsea Building Society | |
| Coventry Building Society | |
| Santander |
Retaining our service will provide you increased control over the value of your Darnall leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
David was the the leasehold proprietor of a 2 bedroom apartment in Darnall on the market with a lease of just over 61 years left. David informally contacted his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were David to exercise his statutory right. David procured expert advice and was able to make a more informed judgement and handle with the matter and readily saleable.
Dr Ben Norbert completed a one bedroom flat in Darnall in February 2004. We are asked if we could shed any light on how much (approximately) price would be for a ninety year lease extension. Identical flats in Darnall with 100 year plus lease were worth £166,400. The average amount of ground rent was £60 invoiced per annum. The lease terminated in 2080. Given that there were 54 years outstanding we estimated the premium to the landlord for the lease extension to be within £32,300 and £37,400 exclusive of professional charges.
Last Christmas we were phoned by Mr and Mrs. U Reed , who completed a studio flat in Darnall in October 2008. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Similar premises in Darnall with a long lease were worth £227,800. The average amount of ground rent was £45 billed annually. The lease expiry date was in 2091. Taking into account 65 years remaining we calculated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 not including legals.