When it comes to residential leasehold premises in Longridge, you are in fact renting it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably once there are less than 80 years left. Leasehold owners in Longridge with a lease approaching 81 years left should seriously think of extending it sooner rather than later. Once the lease term has below eighty years outstanding, under the current Act the freeholder is entitled to calculate and levy a greater amount, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold properties in Longridge with over one hundred years unexpired on the lease are often 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 to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barnsley Building Society | |
| Chelsea Building Society | |
| Nationwide Building Society | |
| TSB |
The lawyers that we work with handle Longridge 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 lawyer we work with provide it.
Jude was the the leasehold owner of a conversion flat in Longridge on the market with a lease of a few days over 59 years left. Jude on an informal basis contacted his landlord a well known London-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Jude to exercise his statutory right. Jude procured expert legal guidance and was able to make a more informed decision and handle with the matter and sell the flat.
Last month we were contacted by Mr J Hall , who bought a ground floor apartment in Longridge in October 2002. The question was if we could shed any light on how much (approximately) price would be for a 90 year lease extension. Comparative flats in Longridge with a long lease were in the region of £200,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease ended in 2104. Given that there were 78 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of expenses.
Dr Jonathan Thomas moved into a purpose-built flat in Longridge in July 2003. We are asked if we could estimate the price would be for a 90 year extension to my lease. Comparative properties in Longridge with an extended lease were valued around £267,600. The average amount of ground rent was £65 billed quarterly. The lease ended in 2093. Considering the 67 years unexpired we calculated the premium to the freeholder for the lease extension to be within £14,300 and £16,400 plus expenses.