Owning a flat usually means owning a lease of the property, which has a finite term of years. your lease will normally be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Freshwater Bay. Clearly, the period of lease remaining shortens over time. This is often ignored and only raises itself as an issue when the property needs to be disposed of or re-mortgaged. The shorter the lease the less it is worth and the more it will cost to extend the lease. Eligible leaseholders in Freshwater Bay have the right to extend the lease for an additional 90 years under the 1993 Leasehold Reform Act. Please give due attention before putting off your Freshwater Bay lease extension. Holding off the cost now likely increases the price you will eventually incur for a lease extension
Leasehold residencies in Freshwater Bay with in excess of 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| National Westminster Bank | |
| TSB | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
Regardless of whether you are a tenant or a landlord in Freshwater Bay,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Freshwater Bay valuers.
George was the the leasehold proprietor of a high value flat in Freshwater Bay being sold with a lease of a few days over 72 years unexpired. George informally spoke with his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 annually. No ground rent would be due on a lease extension were George to exercise his statutory right. George procured expert advice and was able to make an informed judgement and handle with the matter and sell the flat.
Last November we were approach by Ms Anna Rivera , who took over the lease of a garden flat in Freshwater Bay in September 2012. We are asked if we could estimate the premium could be for a 90 year extension to my lease. Similar properties in Freshwater Bay with an extended lease were valued around £285,000. The mid-range ground rent payable was £45 invoiced quarterly. The lease terminated in 2098. Given that there were 72 years left we approximated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 not including expenses.
Last month we were phoned by Mrs B Watson , who acquired a newly refurbished flat in Freshwater Bay in June 2000. The dilemma was if we could shed any light on how much (roughly) premium could be for a 90 year extension to my lease. Comparable flats in Freshwater Bay with 100 year plus lease were valued about £233,200. The average ground rent payable was £60 billed annually. The lease lapsed on 19 March 2087. Given that there were 61 years remaining we calculated the premium to the freeholder to extend the lease to be between £22,800 and £26,400 not including costs.