When it comes to long leasehold property in Garstang, you are in fact renting it for a certain amount of time. These days flat leases typically tend to be 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. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially when there are fewer than eighty years remaining. Residents in Garstang with a lease drawing near to 81 years left should seriously think of extending it as soon as possible. Once a lease has under 80 years left, under the relevant legislation the freeholder is entitled to calculate and charge a greater premium, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barclays plc | |
| Birmingham Midshires | |
| Leeds Building Society | |
| Virgin |
Retaining our service will provide you better control over the value of your Garstang leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
James owned a high value flat in Garstang being sold with a lease of fraction over 61 years left. James informally contacted his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 per annum. Ordinarily, ground rent would not be payable on a lease extension were James to exercise his statutory right. James obtained expert legal guidance and secured satisfactory deal informally and readily saleable.
Last November we were called by Mr and Mrs. K Pérez , who completed a newly refurbished flat in Garstang in January 1997. We are asked if we could estimate the compensation to the landlord could be for a ninety year lease extension. Identical flats in Garstang with a long lease were valued about £275,000. The average ground rent payable was £45 billed every twelve months. The lease came to a finish in 2095. Taking into account 69 years outstanding we estimated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 not including legals.
Last Winter we were e-mailed by Dr Lucas Kelly , who owned a purpose-built apartment in Garstang in November 2009. The question was if we could approximate the premium would likely be to extend the lease by a further 90 years. Comparative premises in Garstang with an extended lease were worth £216,000. The average ground rent payable was £60 collected quarterly. The lease ran out on 21 March 2084. Given that there were 58 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 exclusive of professional charges.