With a domestic leasehold premises in Euxton, you are actually purchasing a right to reside in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension sooner rather than 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 80 years left. Leasehold owners in Euxton with a lease approaching 81 years unexpired should seriously think of extending it without delay. Once the lease term has fewer than 80 years remaining, under the relevant statute the landlord can calculate and demand a greater amount, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold properties in Euxton with over 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you enhanced control over the value of your Euxton leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Ali, came perilously close to the 80-year threshold with the lease on his purpose- built apartment in Euxton. Having bought his flat two decades ago, the lease term was of little interest. Fortunately, he noticed he needed to take steps soon on Extending the lease. Ali extended the lease at the eleventh hour in September. Ali and the landlord who owned the flat above subsequently settled on the final figure of £5,500 . If the lease had gone below eighty years, the figure would have escalated by a minimum £1,050.
Last June we were called by Mr and Mrs. W White , who moved into a one bedroom flat in Euxton in April 2001. The question was if we could shed any light on how much (approximately) price could be for a ninety year lease extension. Similar properties in Euxton with a long lease were worth £267,600. The average amount of ground rent was £65 collected quarterly. The lease concluded on 3 July 2092. Taking into account 67 years outstanding we calculated the premium to the freeholder to extend the lease to be between £14,300 and £16,400 plus professional charges.
In 2009 we were contacted by Dr Hugo David who, having bought a newly refurbished flat in Euxton in January 2000. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by 90 years. Similar flats in Euxton with an extended lease were in the region of £206,200. The mid-range amount of ground rent was £60 billed annually. The lease came to a finish in 2081. Taking into account 56 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £32,300 and £37,400 plus expenses.