With a long leasehold property in Dingle, you effectively rent it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should think about extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially when there are less than 80 years remaining. Residents in Dingle with a lease nearing 81 years unexpired should seriously think of extending it sooner as opposed to later. When the lease term has fewer than eighty years remaining, under the current statute the freeholder can calculate and charge a larger amount, assessed on a technical computation, known as “marriage value” which is payable.
Leasehold residencies in Dingle with more than one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Barclays plc | |
| Coventry Building Society | |
| Halifax |
Irrespective of whether you are a tenant or a landlord in Dingle,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Dingle valuers.
Felix was the the leasehold owner of a conversion apartment in Dingle on the market with a lease of a few days over fifty eight years outstanding. Felix on an informal basis approached his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £100 annually. Ordinarily, ground rent would not be due on a lease extension were Felix to exercise his statutory right. Felix procured expert advice and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
Last month we were phoned by Mr N Johnson , who moved into a one bedroom apartment in Dingle in August 2004. The dilemma was if we could shed any light on how much (roughly) price would likely be for a 90 year lease extension. Comparative premises in Dingle with an extended lease were in the region of £208,200. The mid-range amount of ground rent was £65 collected quarterly. The lease concluded on 20 February 2087. Taking into account 61 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £20,000 and £23,000 plus professional charges.
In 2009 we were e-mailed by Ms B Allen who, having took over the lease of a purpose-built apartment in Dingle in January 1995. The dilemma was if we could shed any light on how much (approximately) price could be to prolong the lease by an additional years. Similar properties in Dingle with an extended lease were valued around £260,000. The mid-range amount of ground rent was £50 billed yearly. The lease expiry date was on 3 April 2098. Taking into account 72 years left we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of legals.