With a long leasehold premises in Dersingham, you effectively rent it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately greater notably once there are less than 80 years remaining. Anyone in Dersingham with a lease nearing 81 years remaining should seriously think of extending it sooner rather than later. Once the lease term has below 80 years left, under the relevant statute the freeholder can calculate and charge a greater premium, based on a technical multiplication, known as “marriage value” which is due.
Leasehold properties in Dersingham with in excess of 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges justify it.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Dersingham,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Dersingham valuers.
Jackson owned a conversion flat in Dersingham on the market with a lease of just over sixty years remaining. Jackson informally contacted his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Jackson to invoke his statutory right. Jackson procured expert advice and secured satisfactory deal without resorting to tribunal and ending up with a market value flat.
Mrs P Fournier completed a studio flat in Dersingham in August 2008. The question was if we could shed any light on how much (approximately) premium would likely be to prolong the lease by ninety years. Comparable properties in Dersingham with 100 year plus lease were in the region of £200,800. The average ground rent payable was £65 collected quarterly. The lease termination date was on 21 October 2086. Having 60 years outstanding we estimated the premium to the landlord to extend the lease to be between £20,900 and £24,200 plus costs.
Dr Hugo Ricardo was assigned a lease of a one bedroom flat in Dersingham in February 2011. The dilemma was if we could approximate the price would be for a 90 year extension to my lease. Identical flats in Dersingham with an extended lease were worth £260,000. The average amount of ground rent was £50 billed quarterly. The lease termination date was on 24 November 2097. Having 71 years remaining we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of professional charges.