When it comes to long leasehold property in Freshwater, you effectively rent it for a certain period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are less than 80 years remaining. Residents in Freshwater with a lease drawing near to 81 years remaining should seriously think of extending it sooner than later. Once a lease has below 80 years left, under the current Act the landlord is entitled to calculate and charge a greater amount, based on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold properties in Freshwater with over one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Leeds Building Society | |
| Nationwide Building Society | |
| Santander | |
| The Mortgage Works |
Using our service will provide you enhanced control over the value of your Freshwater 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 are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Ethan was the the leasehold proprietor of a conversion flat in Freshwater being sold with a lease of a little over 59 years left. Ethan informally approached his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 annually. No ground rent would be due on a lease extension were Ethan to exercise his statutory right. Ethan obtained expert legal guidance and secured satisfactory resolution informally and ending up with a market value flat.
Last year we were phoned by Ms T Nguyen , who bought a garden apartment in Freshwater in May 2012. We are asked if we could shed any light on how much (roughly) price would be to prolong the lease by a further 90 years. Similar premises in Freshwater with an extended lease were valued about £232,800. The average amount of ground rent was £45 invoiced per annum. The lease expired on 20 November 2091. Having 65 years unexpired we approximated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of professional charges.
In 2014 we were approached by Mr and Mrs. K Lefèvre who, having was assigned a lease of a one bedroom apartment in Freshwater in May 2005. The dilemma was if we could shed any light on how much (roughly) premium could be for a ninety year lease extension. Comparative residencies in Freshwater with a long lease were valued around £275,000. The average ground rent payable was £55 billed yearly. The lease terminated on 8 September 2102. Having 76 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.