With a long leasehold premises in England Springs, you effectively rent it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately greater notably once there are less than 80 years left. Residents in England Springs with a lease approaching 81 years remaining should seriously consider extending it as soon as possible. Once a lease has less than 80 years outstanding, under the relevant statute the freeholder can calculate and levy a greater premium, based on a technical multiplication, known as “marriage value” which is due.
It is generally considered that a property with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Birmingham Midshires | |
| Godiva Mortgages | |
| Halifax | |
| Leeds Building Society |
The conveyancers that we work with undertake England Springs lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Cameron was the the leasehold proprietor of a 2 bedroom apartment in England Springs being marketed with a lease of just over 61 years unexpired. Cameron informally approached his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Cameron to invoke his statutory right. Cameron obtained expert legal guidance and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
Last October we were approach by Mr F Davies , who acquired a ground floor flat in England Springs in June 2005. The question was if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year extension to my lease. Identical residencies in England Springs with an extended lease were valued around £245,000. The mid-range ground rent payable was £50 billed monthly. The lease ended in 2094. Taking into account 68 years left we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus legals.
Last Christmas we were contacted by Dr D Rivera , who took over the lease of a recently refurbished apartment in England Springs in April 1996. We are asked if we could approximate the premium would likely be to prolong the lease by ninety years. Identical flats in England Springs with 100 year plus lease were worth £285,000. The average amount of ground rent was £55 billed per annum. The lease ended in 2105. Given that there were 79 years remaining we approximated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 plus legals.