With a domestic leasehold premises in Dulverton, you are in fact renting it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive notably once there are fewer than eighty years remaining. Residents in Dulverton with a lease nearing 81 years remaining should seriously consider extending it sooner than later. Once a lease has below eighty years outstanding, under the relevant legislation the landlord can calculate and charge a greater premium, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| National Westminster Bank | |
| Nationwide Building Society | |
| TSB | |
| The Mortgage Works |
Irrespective of whether you are a tenant or a landlord in Dulverton,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 Dulverton valuers.
Charlie was the the leasehold owner of a high value flat in Dulverton on the market with a lease of fraction over 59 years outstanding. Charlie informally spoke with 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 grant an extension taking the lease to 125 years subject to a new rent initially set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Charlie to invoke his statutory right. Charlie obtained expert advice and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
Mr and Mrs. F Fournier completed a purpose-built apartment in Dulverton in January 1996. We are asked if we could approximate the price would likely be for a ninety year lease extension. Comparable premises in Dulverton with a long lease were in the region of £280,000. The average ground rent payable was £55 invoiced annually. The lease ran out in 2104. Considering the 78 years remaining we approximated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of fees.
In 2013 we were called by Mr R Martinez who, having bought a garden flat in Dulverton in November 2002. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by ninety years. Comparable residencies in Dulverton with an extended lease were worth £191,000. The average ground rent payable was £65 billed annually. The lease terminated on 16 July 2084. Having 58 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £23,800 and £27,400 plus legals.