With a domestic leasehold premises in Filton, you are in fact renting it for a certain amount of time. These days 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 should think about extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially once there are fewer than eighty years left. Anyone in Filton with a lease approaching 81 years left should seriously think of extending it without delay. Once a lease has less than eighty years outstanding, under the relevant legislation the freeholder is entitled to calculate and demand a larger amount, based on a technical calculation, strangely termed as “marriage value” which is due.
It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Using our service will provide you better control over the value of your Filton leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Jacob, started to get near to the 80-year threshold with the lease on his ground floor apartment in Filton. In buying his home two decades ago, the unexpired term was of little bearing. As luck would have it, it dawned on him that he would soon be paying way over the odds for Extending the lease. Jacob was able to extend his lease just under the wire last July. Jacob and the freeholder via the managing agents subsequently agreed on the final figure of £5,000 . If he had missed the deadline, the figure would have escalated by at least £850.
In 2012 we were called by Mr and Mrs. O Pérez who, having purchased a newly refurbished flat in Filton in February 1996. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by ninety years. Comparative premises in Filton with a long lease were in the region of £270,000. The average ground rent payable was £55 invoiced every twelve months. The lease concluded in 2100. Taking into account 74 years left we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of professional charges.
In 2012 we were e-mailed by Mrs F Norbert who, having bought a studio apartment in Filton in November 2011. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Comparative properties in Filton with an extended lease were in the region of £166,400. The mid-range amount of ground rent was £60 billed monthly. The lease ran out on 28 August 2080. Considering the 54 years as a residual term we estimated the premium to the landlord to extend the lease to be within £32,300 and £37,400 plus expenses.