When it comes to residential leasehold property in Emerson Park, you are actually buying an entitlement to live in a property for a set period 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 rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive notably when there are less than 80 years left. Residents in Emerson Park with a lease drawing near to 81 years unexpired should seriously think of extending it sooner than later. When a lease has under 80 years left, under the relevant legislation the landlord is entitled to calculate and demand a greater premium, assessed on a technical computation, strangely termed as “marriage value” which is payable.
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire Building Society | 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. |
Regardless of whether you are a tenant or a freeholder in Emerson Park,the lease extension lawyers 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 Emerson Park valuers.
Oscar owned a high value flat in Emerson Park on the market with a lease of a few days over fifty eight years outstanding. Oscar on an informal basis contacted his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 yearly. Ordinarily, ground rent would not be due on a lease extension were Oscar to invoke his statutory right. Oscar procured expert advice and was able to make an informed decision and handle with the matter and sell the flat.
In 2010 we were approached by Dr O Howard who, having acquired a garden apartment in Emerson Park in March 2005. We are asked if we could estimate the compensation to the landlord would be to extend the lease by an additional years. Comparable premises in Emerson Park with 100 year plus lease were worth £235,200. The average amount of ground rent was £45 collected yearly. The lease finished in 2092. Having 66 years unexpired we approximated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of legals.
An example of a Lease Extension case for a Emerson Park property is 37 Lodge Court High Street in November 2013. the decision of the LVT was that the premium to be paid for the new lease was £25,559 This case related to 1 flat. The number of years remaining on the existing lease(s) was 57.5 years.