When it comes to domestic leasehold property in Geddington, you are in fact renting it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should consider a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive particularly when there are fewer than eighty years left. Residents in Geddington with a lease approaching 81 years unexpired should seriously consider extending it without delay. Once the lease term has under 80 years left, under the current Act the freeholder is entitled to calculate and charge a larger amount, based on a technical computation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
The conveyancing solicitors that we work with undertake Geddington 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.
In the wake of eight months of lengthy correspondence with the freeholder of her garden apartment in Geddington, Laura started the lease extension process just as her lease was nearing the crucial 80-year deadline. The lease extension completed in January 2006. The landlord’s fees were restricted to approximately 450 GBP.
In 2011 we were contacted by Dr Gemma Carter who, having bought a studio flat in Geddington in May 1996. The dilemma was if we could approximate the compensation to the landlord would likely be to prolong the lease by ninety years. Similar premises in Geddington with an extended lease were worth £290,000. The mid-range ground rent payable was £60 billed every twelve months. The lease ended in 2105. Taking into account 80 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 plus fees.
In 2013 we were contacted by Dr C Simon who, having completed a purpose-built flat in Geddington in May 2002. We are asked if we could estimate the compensation to the landlord could be to extend the lease by 90 years. Identical properties in Geddington with 100 year plus lease were valued around £200,800. The mid-range ground rent payable was £65 collected every twelve months. The lease ran out on 20 March 2085. Having 60 years outstanding we estimated the premium to the landlord for the lease extension to be within £20,900 and £24,200 not including costs.