With a long leasehold premises in Great Coates, 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. Many leasehold owners are unconcerned as this seems like a long period of time, you may think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater notably when there are fewer than eighty years left. Anyone in Great Coates with a lease drawing near to 81 years left should seriously think of extending it sooner rather than later. When the lease term has under eighty years outstanding, under the current legislation the freeholder can calculate and demand a larger premium, based on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold residencies in Great Coates with over one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Coventry Building Society | |
| Godiva Mortgages | |
| Royal Bank of Scotland | |
| Virgin |
The lawyers that we work with procure Great Coates 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 conveyancing solicitor we work with provide it.
Twenty four months ago Isaac, started to get near to the eighty-year threshold with the lease on his two bedroom apartment in Great Coates. In buying his home two decades ago, the unexpired term was of no importance. As luck would have it, he realised he would imminently be paying an escalated premium for Extending the lease. Isaac arranged for a lease extension just ahead of time in March. Isaac and the freeholder via the managing agents subsequently settled on an amount of £6,000 . If the lease had descended below eighty years, the price would have increased by a minimum £925.
In 2014 we were e-mailed by Mr and Mrs. I Scott who, having bought a purpose-built flat in Great Coates in August 2001. We are asked if we could approximate the premium would be for a 90 year lease extension. Comparable premises in Great Coates with an extended lease were worth £260,000. The mid-range ground rent payable was £50 billed quarterly. The lease lapsed on 18 April 2098. Given that there were 72 years outstanding we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus professional charges.
Dr Ali Sharif was assigned a lease of a studio apartment in Great Coates in August 1995. The dilemma was if we could estimate the compensation to the landlord would be for a ninety year lease extension. Comparative properties in Great Coates with a long lease were valued around £256,600. The mid-range ground rent payable was £60 invoiced quarterly. The lease finished on 25 October 2078. Given that there were 52 years unexpired we approximated the premium to the landlord for the lease extension to be between £39,000 and £45,000 plus fees.