When it comes to residential leasehold premises in Fordingbridge, you are in fact renting it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably when there are fewer than 80 years remaining. Leasehold owners in Fordingbridge with a lease drawing near to 81 years left should seriously think of extending it without delay. Once the lease term has under eighty years remaining, under the relevant legislation the landlord can calculate and levy a greater amount, based on a technical multiplication, known as “marriage value” which is due.
It is generally accepted that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with undertake Fordingbridge 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 lawyer we work with provide it.
In recent months Luca, started to get close to the eighty-year threshold with the lease on his basement apartment in Fordingbridge. In buying his flat 18 years ago, the length of the lease was of no bearing. As luck would have it, he recognised he would soon be paying an escalated premium for Extending the lease. Luca arranged for a lease extension at the eleventh hour last April. Luca and the freeholder eventually agreed on a premium of £6,000 . If he failed to meet the deadline, the sum would have become more costly by at least £925.
In 2011 we were phoned by Mr Ryan Parker who, having bought a recently refurbished apartment in Fordingbridge in June 2007. The question was if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year extension to my lease. Identical residencies in Fordingbridge with an extended lease were worth £265,200. The average ground rent payable was £65 billed annually. The lease ran out in 2092. Considering the 66 years unexpired we calculated the premium to the freeholder for the lease extension to be between £15,200 and £17,600 not including costs.
Ms V Ward took over the lease of a basement flat in Fordingbridge in February 2004. The dilemma was if we could estimate the premium could be for a 90 year lease extension. Identical flats in Fordingbridge with an extended lease were valued about £198,800. The average ground rent payable was £55 collected every twelve months. The lease finished on 10 August 2081. Given that there were 55 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £33,300 and £38,400 exclusive of legals.