When it comes to residential leasehold property in Long Melford, you are actually purchasing an entitlement to live in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately greater particularly when there are less than 80 years remaining. Leasehold owners in Long Melford with a lease nearing 81 years left should seriously consider extending it as soon as possible. Once the lease term has under 80 years left, under the relevant statute the freeholder is entitled to calculate and levy a greater amount, assessed on a technical computation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
The conveyancing solicitors that we work with undertake Long Melford 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 conveyancer we work with provide it.
Nathan owned a studio flat in Long Melford being marketed with a lease of a few days over 59 years unexpired. Nathan on an informal basis contacted his landlord being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £100 yearly. Ordinarily, ground rent would not be payable on a lease extension were Nathan to exercise his statutory right. Nathan obtained expert legal guidance and was able to make a more informed decision and deal with the matter and readily saleable.
Last June we were called by Dr N Collins , who purchased a basement flat in Long Melford in August 2004. The dilemma was if we could shed any light on how much (roughly) price would be to extend the lease by ninety years. Comparative flats in Long Melford with an extended lease were valued around £191,000. The average amount of ground rent was £65 collected quarterly. The lease ran out on 7 November 2083. Taking into account 58 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £23,800 and £27,400 plus expenses.
In 2012 we were approached by Ms Y Davies who, having purchased a garden flat in Long Melford in June 1996. We are asked if we could estimate the premium could be for a ninety year extension to my lease. Identical residencies in Long Melford with a long lease were in the region of £250,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease ended on 9 June 2094. Given that there were 69 years outstanding we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of legals.