When it comes to residential leasehold premises in Freshford, you are actually purchasing an entitlement to reside in a property for a prescribed time frame. These days 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 a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are less than 80 years remaining. Leasehold owners in Freshford with a lease nearing 81 years remaining should seriously consider extending it sooner than later. Once a lease has below 80 years left, under the current Act the freeholder is entitled to calculate and demand a larger amount, assessed on a technical calculation, known as “marriage value” which is payable.
Leasehold premises in Freshford with more than 100 years unexpired on the lease are often regarded as a ‘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 merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 Freshford leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Twenty four months ago Muhammad, came seriously close to the 80-year mark with the lease on his studio apartment in Freshford. Having purchased his home two decades ago, the length of the lease was of little significance. Luckily, he recognised he needed to take steps soon on a lease extension. Muhammad was able to extend his lease just ahead of time in June. Muhammad and the freeholder via the management company subsequently agreed on an amount of £5,000 . If the lease had descended below eighty years, the amount would have increased by a minimum £1,025.
Last Autumn we were called by Mr Muhammad Morgan , who was assigned a lease of a ground floor flat in Freshford in July 2012. We are asked if we could approximate the price would be for a ninety year lease extension. Comparative flats in Freshford with 100 year plus lease were worth £290,000. The average ground rent payable was £45 collected quarterly. The lease came to a finish on 13 November 2099. Taking into account 73 years unexpired we approximated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of professional charges.
Last Winter we were approach by Mrs Natasha Gunderson , who took over the lease of a purpose-built apartment in Freshford in May 1997. The question was if we could shed any light on how much (approximately) premium could be to prolong the lease by ninety years. Comparative properties in Freshford with 100 year plus lease were in the region of £235,600. The mid-range ground rent payable was £60 invoiced monthly. The lease finished on 17 July 2088. Having 62 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £21,900 and £25,200 exclusive of legals.