When it comes to long leasehold premises in Gravesend, you are actually buying a right to reside in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are less than eighty years remaining. Residents in Gravesend with a lease approaching 81 years remaining should seriously think of extending it as soon as possible. When the lease term has less than 80 years left, under the current Act the freeholder is entitled to calculate and levy a greater amount, based on a technical calculation, known as “marriage value” which is payable.
Leasehold residencies in Gravesend with more than one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Leeds Building Society | |
| The Mortgage Works | |
| Virgin |
Retaining our service gives you increased control over the value of your Gravesend leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Arthur, came seriously close to the eighty-year mark with the lease on his ground floor flat in Gravesend. In buying his property 19 years previously, the unexpired term was of little bearing. Fortunately, he recognised he needed to take steps soon on a lease extension. Arthur extended the lease just ahead of time in May. Arthur and the freeholder via the management company eventually agreed on a premium of £6,000 . If the lease had dropped to less than 80 years, the sum would have escalated by a minimum £900.
In 2011 we were called by Mr and Mrs. U Bernard who, having owned a studio flat in Gravesend in June 2000. The question was if we could estimate the price would be to prolong the lease by 90 years. Comparable premises in Gravesend with a long lease were worth £225,400. The average ground rent payable was £45 billed every twelve months. The lease terminated on 6 September 2090. Considering the 64 years left we calculated the compensation to the freeholder to extend the lease to be within £16,200 and £18,600 plus expenses.
Mr K Mercier owned a one bedroom apartment in Gravesend in March 2010. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by ninety years. Similar flats in Gravesend with a long lease were in the region of £270,000. The mid-range ground rent payable was £55 invoiced every twelve months. The lease terminated in 2101. Given that there were 75 years unexpired we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including expenses.