With a domestic leasehold premises in Enderby, you are actually buying an entitlement to reside in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may consider 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 fewer than 80 years left. Anyone in Enderby with a lease approaching 81 years remaining should seriously consider extending it sooner rather than later. Once the lease term has below eighty years left, under the relevant legislation the freeholder is entitled to calculate and demand a greater amount, based on a technical calculation, known as “marriage value” which is payable.
Leasehold residencies in Enderby with in excess of one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Birmingham Midshires | |
| National Westminster Bank | |
| The Mortgage Works | |
| Virgin |
Irrespective of whether you are a tenant or a freeholder in Enderby,the lease extension experts 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 Enderby valuers.
Ethan owned a studio apartment in Enderby being marketed with a lease of a few days over fifty eight years outstanding. Ethan informally spoke with his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Ethan to invoke his statutory right. Ethan obtained expert advice and was able to make an informed judgement and handle with the matter and sell the flat.
Mr and Mrs. B Simon completed a one bedroom apartment in Enderby in April 1997. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by ninety years. Identical residencies in Enderby with an extended lease were worth £275,000. The mid-range ground rent payable was £65 collected per annum. The lease expired in 2094. Taking into account 68 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of costs.
In 2010 we were e-mailed by Mr and Mrs. D Bennett who, having acquired a recently refurbished flat in Enderby in January 2002. The question was if we could estimate the compensation to the landlord could be to extend the lease by a further 90 years. Comparative flats in Enderby with 100 year plus lease were valued about £208,600. The average amount of ground rent was £60 collected monthly. The lease terminated in 2083. Given that there were 57 years left we estimated the compensation to the freeholder to extend the lease to be between £30,400 and £35,200 not including professional charges.