With a residential leasehold premises in Liphook, you effectively rent it for a certain period of time. In recent years 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 a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive notably once there are less than 80 years left. Leasehold owners in Liphook with a lease approaching 81 years left should seriously think of extending it without delay. Once the lease term has under eighty years outstanding, under the relevant Act the freeholder is entitled to calculate and demand a larger premium, based on a technical multiplication, known as “marriage value” which is due.
Leasehold properties in Liphook with over 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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. |
Engaging our service gives you better control over the value of your Liphook leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Ryan, came very close to the eighty-year threshold with the lease on his leasehold flat in Liphook. In buying his home two decades ago, the lease term was of no relevance. by good luck, it dawned on him that he would imminently be paying an escalated premium for a lease extension. Ryan arranged for a lease extension at the eleventh hour last July. Ryan and the landlord who owned the flat above in the end agreed on an amount of £5,500 . If the lease had fallen lower than eighty years, the premium would have become more costly by a minimum £1,100.
Dr Rory Hill took over the lease of a first floor apartment in Liphook in August 1998. The question was if we could approximate the price would likely be to extend the lease by an additional years. Similar premises in Liphook with 100 year plus lease were in the region of £275,000. The mid-range amount of ground rent was £45 billed yearly. The lease elapsed in 2095. Having 69 years outstanding we approximated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of professional charges.
Last Autumn we were e-mailed by Mr and Mrs. G Wilson , who purchased a studio flat in Liphook in August 2006. The question was if we could estimate the premium would likely be for a 90 year extension to my lease. Similar homes in Liphook with a long lease were worth £216,000. The average amount of ground rent was £60 collected annually. The lease lapsed on 22 November 2084. Considering the 58 years left we calculated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 exclusive of fees.