With a residential leasehold premises in Fleetwood, you effectively rent it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may 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 particularly when there are fewer than 80 years remaining. Leasehold owners in Fleetwood with a lease approaching 81 years remaining should seriously think of extending it sooner rather than later. When the lease term has below eighty years outstanding, under the relevant statute the landlord is entitled to calculate and demand a larger amount, based on a technical computation, known as “marriage value” which is payable.
Leasehold residencies in Fleetwood with over one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
The lawyers that we work with undertake Fleetwood 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.
Nathaniel owned a conversion apartment in Fleetwood on the market with a lease of fraction over fifty eight years remaining. Nathaniel informally spoke with his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 yearly. Ordinarily, ground rent would not be payable on a lease extension were Nathaniel to invoke his statutory right. Nathaniel procured 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.
In 2009 we were contacted by Mrs K Smith who, having acquired a one bedroom apartment in Fleetwood in June 2002. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by a further 90 years. Identical residencies in Fleetwood with 100 year plus lease were worth £250,000. The average amount of ground rent was £50 collected monthly. The lease finished on 20 May 2095. Given that there were 69 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus legals.
Last year we were called by Mrs A Norbert , who bought a basement apartment in Fleetwood in August 2003. The question was if we could approximate the price would likely be to prolong the lease by 90 years. Comparable residencies in Fleetwood with an extended lease were in the region of £290,000. The average amount of ground rent was £60 collected yearly. The lease ran out in 2106. Having 80 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of fees.