With a domestic leasehold property in Groby, you effectively rent it for a certain amount 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 should consider 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 especially once there are fewer than eighty years left. Leasehold owners in Groby with a lease drawing near to 81 years left should seriously consider extending it as soon as possible. When the lease term has under 80 years remaining, under the current statute the landlord is entitled to calculate and demand a greater premium, assessed on a technical multiplication, known as “marriage value” which is due.
Leasehold residencies in Groby with over 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Coventry Building Society | |
| Nationwide Building Society | |
| The Mortgage Works | |
| Yorkshire Building Society |
The lawyers that we work with procure Groby 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.
David owned a conversion apartment in Groby being marketed with a lease of just over 59 years unexpired. David on an informal basis spoke with his freeholder a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were David to invoke his statutory right. David obtained expert advice and was able to make an informed decision and deal with the matter and sell the property.
In 2013 we were contacted by Ms P André who, having owned a one bedroom flat in Groby in October 2008. The question was if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year extension to my lease. Comparable residencies in Groby with a long lease were in the region of £265,000. The average amount of ground rent was £50 invoiced quarterly. The lease concluded on 26 August 2099. Taking into account 73 years outstanding we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of costs.
In 2013 we were called by Dr Isaac Gómez who, having acquired a recently refurbished flat in Groby in April 1996. The question was if we could estimate the premium would be to extend the lease by ninety years. Comparable premises in Groby with a long lease were in the region of £264,000. The average amount of ground rent was £60 collected monthly. The lease finished on 13 May 2079. Given that there were 53 years left we calculated the compensation to the freeholder for the lease extension to be within £37,100 and £42,800 exclusive of expenses.