With a residential leasehold property in Limbury, you are actually purchasing a right to reside 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 lengthy 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 particularly when there are fewer than 80 years left. Leasehold owners in Limbury with a lease approaching 81 years remaining should seriously think of extending it without delay. Once a lease has less than eighty years left, under the current Act the landlord can calculate and demand a greater premium, based on a technical calculation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the premises will be equivalent in value to 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 Limbury,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Limbury valuers.
14 months ago Elijah, came seriously close to the 80-year threshold with the lease on his studio apartment in Limbury. In buying his flat twenty years ago, the length of the lease was of minimal concern. Thankfully, he realised he needed to take action soon on a lease extension. Elijah arranged for a lease extension at the eleventh hour last June. Elijah and the landlord ultimately agreed on the final figure of £5,000 . If the lease had fallen to less than eighty years, the sum would have become more exhorbitant by at least £1,125.
In 2009 we were contacted by Ms Bethan Turner who, having owned a recently refurbished flat in Limbury in March 2005. The question was if we could shed any light on how much (roughly) premium would likely be to extend the lease by an additional years. Similar premises in Limbury with an extended lease were worth £210,600. The average ground rent payable was £45 collected monthly. The lease elapsed on 6 June 2087. Given that there were 62 years left we estimated the compensation to the landlord for the lease extension to be within £18,100 and £20,800 exclusive of legals.
Last month we were called by Dr S Sánchez , who was assigned a lease of a one bedroom apartment in Limbury in March 2008. The question was if we could estimate the premium would likely be for a 90 year extension to my lease. Similar premises in Limbury with 100 year plus lease were valued about £260,000. The mid-range ground rent payable was £50 collected per annum. The lease lapsed in 2098. Considering the 73 years remaining we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including legals.