When it comes to residential leasehold property in Lancaster, you are actually buying a right to live in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider 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 increases markedly notably when there are less than eighty years left. Leasehold owners in Lancaster with a lease drawing near to 81 years left should seriously think of extending it without delay. Once a lease has below eighty years outstanding, under the relevant legislation the freeholder can calculate and levy a greater amount, based on a technical computation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Halifax | |
| Leeds Building Society | |
| Nationwide Building Society | |
| Skipton Building Society | |
| Virgin |
Lease extensions in Lancaster can be a difficult process. We recommend you obtain guidance from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Lancaster lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jasper was the the leasehold owner of a studio flat in Lancaster on the market with a lease of fraction over 72 years unexpired. Jasper on an informal basis spoke with his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £200 annually. Ordinarily, ground rent would not be payable on a lease extension were Jasper to invoke his statutory right. Jasper procured expert advice and was able to make a more informed decision and deal with the matter and readily saleable.
In 2014 we were approached by Mr and Mrs. T Vincent who, having bought a one bedroom apartment in Lancaster in August 2008. We are asked if we could approximate the price could be to prolong the lease by ninety years. Similar homes in Lancaster with an extended lease were worth £230,800. The mid-range ground rent payable was £60 collected yearly. The lease ended on 20 March 2086. Taking into account 60 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £24,700 and £28,600 plus costs.
In 2014 we were contacted by Mr Ibrahim Roux who, having moved into a basement flat in Lancaster in January 2001. The question was if we could estimate the price would be for a ninety year lease extension. Comparable residencies in Lancaster with a long lease were valued about £166,800. The mid-range amount of ground rent was £50 invoiced annually. The lease expired on 24 June 2076. Taking into account 50 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £32,300 and £37,400 plus legals.