When it comes to domestic leasehold premises in Lake, you are actually purchasing an entitlement to reside in a property for a prescribed time frame. Modern 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 as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive particularly when there are less than 80 years remaining. Anyone in Lake with a lease drawing near to 81 years remaining should seriously consider extending it without delay. Once a lease has fewer than 80 years outstanding, under the relevant Act the freeholder is entitled to calculate and levy a larger premium, based on a technical calculation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service will provide you enhanced control over the value of your Lake leasehold, as your property will be more valuable and marketable in terms of 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.
After lengthy discussions with the freeholder of her first floor flat in Lake, Alicia initiated the lease extension process just as the lease was approaching the critical 80-year mark. The transaction was finalised in February 2006. The landlord’s charges were negotiated to under 650 GBP.
In 2011 we were e-mailed by Dr Francesca Brooks who, having was assigned a lease of a newly refurbished apartment in Lake in October 1995. The question was if we could approximate the price could be to extend the lease by ninety years. Identical residencies in Lake with 100 year plus lease were in the region of £295,000. The average ground rent payable was £50 invoiced every twelve months. The lease concluded on 22 April 2101. Taking into account 75 years left we calculated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of professional charges.
Last Spring we were called by Mr and Mrs. T Collins , who took over the lease of a studio flat in Lake in September 2005. The question was if we could shed any light on how much (approximately) premium could be to prolong the lease by a further 90 years. Comparative premises in Lake with 100 year plus lease were in the region of £250,400. The average ground rent payable was £65 collected monthly. The lease elapsed in 2090. Given that there were 64 years unexpired we calculated the premium to the landlord to extend the lease to be between £19,000 and £22,000 plus costs.