When it comes to residential leasehold property in Market Harborough, you are actually buying an entitlement to reside in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive especially once there are fewer than 80 years remaining. Residents in Market Harborough with a lease approaching 81 years unexpired should seriously consider extending it sooner than later. When a lease has fewer than 80 years left, under the relevant statute the freeholder can calculate and charge a greater premium, based on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold premises in Market Harborough with more than one hundred years remaining on the lease are often referred to as ‘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 purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Coventry Building Society | |
| National Westminster Bank | |
| Nationwide Building Society | |
| TSB |
Using our service will provide you better control over the value of your Market Harborough leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last year Kai, came very close to the eighty-year mark with the lease on his first floor flat in Market Harborough. Having bought his home two decades ago, the lease term was of little relevance. As luck would have it, it dawned on him that he would imminently be paying an escalated premium for Extending the lease. Kai arranged for a lease extension just under the wire last March. Kai and the freeholder via the managing agents subsequently settled on an amount of £5,500 . If the lease had gone to less than eighty years, the sum would have gone up by at least £875.
Last Spring we were phoned by Dr Stanley Gunderson , who moved into a first floor flat in Market Harborough in January 2008. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Identical flats in Market Harborough with 100 year plus lease were in the region of £227,800. The mid-range amount of ground rent was £45 billed yearly. The lease expiry date was on 20 October 2091. Having 65 years left we calculated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of legals.
In 2014 we were contacted by Mr and Mrs. S Michel who, having completed a recently refurbished flat in Market Harborough in June 2012. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by a further 90 years. Comparable homes in Market Harborough with a long lease were in the region of £275,000. The average amount of ground rent was £55 billed yearly. The lease came to a finish in 2102. Taking into account 76 years remaining we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of legals.