With a domestic leasehold premises in Lavenham, you are actually buying a right to reside in a property for a prescribed time frame. 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 may consider extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater particularly once there are less than eighty years left. Residents in Lavenham with a lease approaching 81 years remaining should seriously think of extending it as soon as possible. When the lease term has under eighty years outstanding, under the current legislation the landlord is entitled to calculate and levy a larger amount, based on a technical calculation, strangely termed as “marriage value” which is payable.
It is generally considered that a residential leasehold with more than 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Lavenham,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Lavenham valuers.
After protracted discussions with the freeholder of her purpose-built flat in Lavenham, Jodie commenced the lease extension process as the 80 year deadline was fast coming. The legal work was finalised in July 2005. The freeholder’s costs were negotiated to less than 600 pounds.
In 2010 we were phoned by Mr and Mrs. I Sharif who, having completed a basement flat in Lavenham in February 2008. The question was if we could shed any light on how much (roughly) price could be for a 90 year extension to my lease. Comparative residencies in Lavenham with a long lease were worth £227,800. The mid-range ground rent payable was £45 collected yearly. The lease ran out on 20 August 2091. Given that there were 65 years unexpired we approximated the premium to the landlord for the lease extension to be within £13,300 and £15,400 plus professional charges.
Last year we were called by Mr and Mrs. Y Davis , who moved into a first floor apartment in Lavenham in February 1999. The question was if we could estimate the premium could be for a ninety year lease extension. Comparable residencies in Lavenham with 100 year plus lease were worth £270,000. The mid-range amount of ground rent was £55 billed yearly. The lease lapsed in 2102. Having 76 years outstanding we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.