Long Sutton leases on domestic deteriorating in value. Where your lease has about 90 years unexpired, you should start considering the need for a lease extension. 80 years is a significant number: when the remaining term of a lease falls below this level then you start paying an additional element called marriage value. Leasehold owners in Long Sutton will mostly be legally entitled to a lease extension; however It would be wise to check with a lawyer to confirm your eligibility. In certain circumstances you may not be entitled. There are also strict timetables and procedures to comply with once the process has started so it’s prudent to be guided by a lawyer during the process.
Leasehold residencies in Long Sutton with more than 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barclays plc | |
| Barnsley Building Society | |
| Coventry Building Society | |
| The Mortgage Works |
The conveyancers that we work with undertake Long Sutton 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 conveyancing solicitor we work with provide it.
During the course of the last few months Daniel, came seriously close to the eighty-year mark with the lease on his leasehold flat in Long Sutton. Having bought his home 19 years ago, the length of the lease was of no concern. Fortunately, he realised he needed to take action soon on Extending the lease. Daniel was able to extend his lease just under the wire last August. Daniel and the freeholder in the end agreed on an amount of £6,000 . If the lease had dropped lower than 80 years, the figure would have increased by at least £1,075.
In 2011 we were phoned by Dr I Williams who, having bought a purpose-built apartment in Long Sutton in May 1999. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparable properties in Long Sutton with a long lease were valued about £174,200. The mid-range ground rent payable was £55 invoiced yearly. The lease terminated on 8 February 2077. Taking into account 51 years unexpired we estimated the compensation to the landlord to extend the lease to be within £31,400 and £36,200 not including fees.
Last year we were called by Dr E Wright , who was assigned a lease of a garden apartment in Long Sutton in August 1996. The question was if we could estimate the premium would likely be for a 90 year lease extension. Identical premises in Long Sutton with 100 year plus lease were worth £280,000. The average ground rent payable was £45 billed monthly. The lease expiry date was in 2097. Considering the 71 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 plus fees.