When it comes to domestic leasehold premises in Kingstanding, you are actually buying a right to live in a property for a set 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 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 especially when there are fewer than eighty years remaining. Leasehold owners in Kingstanding with a lease drawing near to 81 years unexpired should seriously consider extending it as soon as possible. When the lease term has below 80 years left, under the relevant legislation the freeholder is entitled to calculate and demand a greater premium, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.
Leasehold residencies in Kingstanding with more than 100 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 home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Birmingham Midshires | |
| Coventry Building Society | |
| Godiva Mortgages | |
| Halifax |
Using our service gives you enhanced control over the value of your Kingstanding leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Jake owned a 2 bedroom apartment in Kingstanding being sold with a lease of fraction over 72 years unexpired. Jake informally approached his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Jake to exercise his statutory right. Jake procured expert legal guidance and was able to make an informed judgement and deal with the matter and readily saleable.
Last Spring we were approach by Mr and Mrs. P François , who purchased a purpose-built apartment in Kingstanding in July 2012. The question was if we could estimate the premium would likely be to prolong the lease by ninety years. Identical flats in Kingstanding with a long lease were valued about £171,800. The mid-range ground rent payable was £55 billed per annum. The lease elapsed in 2076. Considering the 50 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £33,300 and £38,400 plus costs.
Dr J Rose moved into a studio apartment in Kingstanding in November 2000. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by ninety years. Comparative premises in Kingstanding with 100 year plus lease were worth £280,000. The mid-range ground rent payable was £45 invoiced per annum. The lease came to a finish in 2096. Having 70 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 not including costs.