Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will usually be granted for a set period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Delabole. Clearly, the length of lease left shortens over time. This is often overlooked and only becomes a problem when the property has to be disposed of or refinanced. The shorter the lease the less it is worth and the more it will cost to extend the lease. Eligible leaseholders in Delabole have the legal entitlement to extend the lease for a further ninety years in accordance with legislation. Do give due consideration before delaying your Delabole lease extension. Putting off the cost now simply increases the price you will ultimately incur to extend your lease
Leasehold residencies in Delabole with in excess of 100 years outstanding 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 reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | |
| Halifax | |
| Leeds Building Society | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
Engaging our service will provide you enhanced control over the value of your Delabole leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Callum owned a conversion apartment in Delabole being sold with a lease of just over sixty years outstanding. Callum on an informal basis approached his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Callum to exercise his statutory right. Callum obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and readily saleable.
Mr Ibrahim Morgan was assigned a lease of a first floor apartment in Delabole in January 2004. We are asked if we could estimate the price could be for a ninety year extension to my lease. Comparable premises in Delabole with 100 year plus lease were worth £198,800. The average amount of ground rent was £55 invoiced yearly. The lease termination date was on 1 March 2081. Taking into account 55 years remaining we approximated the premium to the landlord for the lease extension to be between £33,300 and £38,400 plus costs.
In 2013 we were approached by Mr and Mrs. C Norbert who, having purchased a studio apartment in Delabole in June 2010. We are asked if we could approximate the premium would likely be for a 90 year extension to my lease. Comparable premises in Delabole with a long lease were valued around £295,000. The average amount of ground rent was £50 invoiced quarterly. The lease finished in 2101. Considering the 75 years unexpired we approximated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of professional charges.