When it comes to residential leasehold property in Meliden, you effectively rent it for a certain period of time. Modern 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 may consider 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 especially when there are fewer than eighty years remaining. Anyone in Meliden with a lease approaching 81 years remaining should seriously think of extending it as soon as possible. When a lease has under 80 years outstanding, under the relevant legislation the freeholder can calculate and levy a larger amount, assessed on a technical computation, known as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Birmingham Midshires | |
| Santander | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
Retaining our service gives you enhanced control over the value of your Meliden leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Finn owned a 2 bedroom apartment in Meliden being marketed with a lease of a little over 72 years remaining. Finn informally spoke with his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £200 annually. Ordinarily, ground rent would not be payable on a lease extension were Finn to exercise his statutory right. Finn obtained expert legal guidance and secured an acceptable deal informally and ending up with a market value flat.
In 2012 we were phoned by Dr Mason Evans who, having completed a studio apartment in Meliden in September 1996. The question was if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Comparable flats in Meliden with a long lease were worth £290,000. The average amount of ground rent was £45 collected quarterly. The lease elapsed in 2098. Taking into account 72 years remaining we approximated the premium to the freeholder for the lease extension to be between £11,400 and £13,200 exclusive of expenses.
Mr Hunter Parker completed a one bedroom apartment in Meliden in June 2002. The dilemma was if we could approximate the premium would likely be to prolong the lease by ninety years. Identical homes in Meliden with 100 year plus lease were valued about £233,200. The mid-range amount of ground rent was £60 invoiced monthly. The lease terminated on 13 July 2087. Given that there were 61 years outstanding we estimated the premium to the freeholder to extend the lease to be between £22,800 and £26,400 exclusive of fees.