With a residential leasehold premises in Fillongley, you effectively rent it for a certain 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 long period of time, you may think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive especially when there are less than eighty years remaining. Leasehold owners in Fillongley with a lease approaching 81 years unexpired should seriously consider extending it sooner than later. Once the lease term has below 80 years remaining, under the current legislation the landlord can calculate and levy a greater premium, assessed on a technical multiplication, known as “marriage value” which is payable.
Leasehold properties in Fillongley with more than one hundred years left on the lease are often referred to as ‘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 maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Skipton Building Society | |
| Virgin | |
| Yorkshire Building Society |
Irrespective of whether you are a tenant or a freeholder in Fillongley,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Fillongley valuers.
Sam was the the leasehold proprietor of a 2 bedroom flat in Fillongley being sold with a lease of a little over sixty years left. Sam informally approached his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Sam to exercise his statutory right. Sam obtained expert legal guidance and was able to make a more informed judgement and deal with the matter and readily saleable.
Last Summer we were contacted by Dr Thomas Peterson , who bought a garden apartment in Fillongley in October 2005. We are asked if we could estimate the price would likely be to extend the lease by 90 years. Comparative premises in Fillongley with a long lease were in the region of £267,600. The mid-range amount of ground rent was £65 collected monthly. The lease expired on 23 September 2093. Taking into account 67 years remaining we approximated the premium to the landlord for the lease extension to be between £14,300 and £16,400 not including professional charges.
Dr Hugo Baker moved into a studio apartment in Fillongley in February 2005. We are asked if we could shed any light on how much (approximately) premium would likely be for a ninety year lease extension. Comparative premises in Fillongley with a long lease were worth £206,200. The mid-range amount of ground rent was £55 billed yearly. The lease lapsed on 28 September 2082. Considering the 56 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 not including fees.