When it comes to domestic leasehold premises in Lakenheath, you are actually buying a right to live in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should consider extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably once there are fewer than eighty years left. Residents in Lakenheath with a lease approaching 81 years remaining should seriously consider extending it as soon as possible. Once a lease has below eighty years outstanding, under the current Act the freeholder can calculate and levy a greater premium, based on a technical computation, known as “marriage value” which is due.
Leasehold properties in Lakenheath with more than 100 years left on the lease are sometimes referred to as ‘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 to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Coventry Building Society | |
| Godiva Mortgages | |
| Santander | |
| Skipton Building Society |
The conveyancing solicitors that we work with undertake Lakenheath 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.
Half a year ago Eli, came dangerously close to the eighty-year threshold with the lease on his basement flat in Lakenheath. Having purchased his property 19 years ago, the length of the lease was of minimal relevance. As luck would have it, he realised he would soon be paying an inflated amount for a lease extension. Eli was able to extend his lease at the eleventh hour last April. Eli and the freeholder in the end agreed on sum of £5,000 . If the lease had gone below eighty years, the price would have increased by a minimum £1,050.
In 2011 we were contacted by Mr and Mrs. C Young who, having bought a basement apartment in Lakenheath in August 1998. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by an additional years. Similar properties in Lakenheath with a long lease were worth £285,000. The average ground rent payable was £55 collected quarterly. The lease termination date was on 28 June 2105. Considering the 79 years remaining we estimated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of legals.
Last Summer we were approach by Mr Luca Khan , who completed a one bedroom flat in Lakenheath in September 2007. We are asked if we could shed any light on how much (roughly) price would be to extend the lease by a further 90 years. Similar properties in Lakenheath with an extended lease were worth £193,400. The average amount of ground rent was £65 collected per annum. The lease came to a finish in 2085. Given that there were 59 years as a residual term we estimated the premium to the landlord to extend the lease to be within £21,900 and £25,200 not including expenses.