With a residential leasehold property in Garstang, you are actually buying an entitlement to live in a property for a set period of time. In recent years 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. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are less than eighty years remaining. Anyone in Garstang with a lease drawing near to 81 years remaining should seriously consider extending it sooner as opposed to later. When a lease has less than eighty years remaining, under the relevant legislation the landlord can calculate and levy a greater amount, assessed on a technical multiplication, known as “marriage value” which is payable.
It is generally accepted that a property with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Halifax | |
| Nationwide Building Society | |
| Santander | |
| Virgin | |
| Yorkshire Building Society |
The lawyers that we work with undertake Garstang 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.
Half a year ago Caleb, came very close to the 80-year mark with the lease on his one bedroom apartment in Garstang. In buying his property 18 years ago, the lease term was of no importance. Thankfully, he realised he needed to take steps soon on Extending the lease. Caleb was able to extend his lease at the eleventh hour in May. Caleb and the landlord who owned the flat above in the end settled on an amount of £5,500 . If the lease had descended below 80 years, the premium would have increased by at least £875.
Mrs I François moved into a ground floor flat in Garstang in February 2005. We are asked if we could approximate the premium would be for a 90 year lease extension. Comparable premises in Garstang with an extended lease were valued about £181,600. The average amount of ground rent was £55 billed yearly. The lease ran out on 26 April 2078. Taking into account 52 years remaining we calculated the compensation to the landlord for the lease extension to be between £30,400 and £35,200 exclusive of expenses.
Last November we were called by Ms W Lewis , who took over the lease of a newly refurbished apartment in Garstang in October 2005. We are asked if we could shed any light on how much (approximately) premium could be for a 90 year lease extension. Comparable residencies in Garstang with an extended lease were valued about £290,000. The mid-range amount of ground rent was £45 collected annually. The lease terminated on 26 July 2099. Taking into account 73 years outstanding we calculated the premium to the landlord for the lease extension to be within £8,600 and £9,800 plus professional charges.