When it comes to residential leasehold premises in Frant, you are actually buying a right to live in a property for a prescribed time frame. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately greater especially once there are less than 80 years left. Anyone in Frant with a lease nearing 81 years remaining should seriously think of extending it sooner rather than later. Once a lease has below eighty years left, under the current legislation the freeholder is entitled to calculate and levy a greater amount, based on a technical multiplication, known as “marriage value” which is payable.
Leasehold properties in Frant with over 100 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 premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barclays plc | |
| Coventry Building Society | |
| Santander | |
| The Mortgage Works |
Using our service will provide you better control over the value of your Frant leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Alfie, came precariously near to the eighty-year threshold with the lease on his garden flat in Frant. Having bought his flat twenty years previously, the length of the lease was of no importance. As luck would have it, he noticed he needed to take steps soon on a lease extension. Alfie arranged for a lease extension just in the nick of time last September. Alfie and the landlord in the end settled on a premium of £6,000 . If he failed to meet the deadline, the amount would have escalated by a minimum £900.
In 2014 we were phoned by Mr and Mrs. N Patel who, having acquired a studio flat in Frant in August 2011. The question was if we could approximate the price would likely be to extend the lease by an additional years. Comparable flats in Frant with 100 year plus lease were valued around £280,000. The average amount of ground rent was £55 invoiced every twelve months. The lease ran out on 1 April 2104. Given that there were 78 years unexpired we estimated the premium to the landlord for the lease extension to be within £13,300 and £15,400 plus expenses.
Last Winter we were contacted by Mr and Mrs. W Baker , who took over the lease of a studio flat in Frant in January 2007. The dilemma was if we could shed any light on how much (roughly) premium would likely be for a 90 year extension to my lease. Similar flats in Frant with 100 year plus lease were worth £191,000. The average ground rent payable was £65 invoiced every twelve months. The lease concluded on 8 July 2084. Considering the 58 years outstanding we estimated the premium to the landlord for the lease extension to be within £23,800 and £27,400 exclusive of legals.