With a residential leasehold property in Lydiate and Melling, you are actually purchasing an entitlement to live in a property for a prescribed time frame. 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 should think about a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive particularly once there are less than eighty years remaining. Leasehold owners in Lydiate and Melling with a lease approaching 81 years remaining should seriously think of extending it without delay. When the lease term has below 80 years left, under the current statute the landlord can calculate and demand a larger premium, assessed on a technical calculation, known as “marriage value” which is due.
Leasehold properties in Lydiate and Melling with in excess of one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Birmingham Midshires | |
| Coventry Building Society | |
| Nationwide Building Society | |
| Yorkshire Building Society |
Regardless of whether you are a tenant or a landlord in Lydiate and Melling,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Lydiate and Melling valuers.
In the wake of 6 months of lengthy discussions with the freeholder of her two bedroom flat in Lydiate and Melling, Catherine commenced the lease extension process just as her lease was approaching the critical eighty-year mark. The lease extension completed in March 2014. The freeholder’s fees were kept to an absolute minimum.
In 2009 we were e-mailed by Dr K King who, having owned a one bedroom flat in Lydiate and Melling in January 2007. We are asked if we could estimate the price would be to prolong the lease by 90 years. Similar properties in Lydiate and Melling with 100 year plus lease were worth £264,000. The mid-range amount of ground rent was £60 invoiced monthly. The lease expiry date was on 18 November 2079. Given that there were 53 years outstanding we approximated the compensation to the landlord to extend the lease to be within £37,100 and £42,800 exclusive of costs.
In 2012 we were e-mailed by Ms A Gray who, having owned a newly refurbished apartment in Lydiate and Melling in September 2000. The question was if we could approximate the price would be to extend the lease by a further 90 years. Similar properties in Lydiate and Melling with a long lease were worth £225,400. The average ground rent payable was £45 billed every twelve months. The lease concluded in 2090. Taking into account 64 years left we estimated the premium to the freeholder to extend the lease to be within £15,200 and £17,600 exclusive of legals.