With a domestic leasehold property in Middlesbrough, you effectively rent it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may consider a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive notably once there are less than eighty years remaining. Leasehold owners in Middlesbrough with a lease drawing near to 81 years unexpired should seriously think of extending it without delay. Once a lease has less than 80 years remaining, under the relevant legislation the freeholder can calculate and levy a greater premium, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| National Westminster Bank | |
| TSB | |
| The Mortgage Works | |
| Virgin |
The conveyancers that we work with handle Middlesbrough 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.
Arthur was the the leasehold proprietor of a conversion apartment in Middlesbrough on the market with a lease of a few days over 72 years unexpired. Arthur on an informal basis spoke with his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Arthur to invoke his statutory right. Arthur obtained expert legal guidance and secured satisfactory deal informally and readily saleable.
Last Summer we were called by Mr E Scott , who took over the lease of a garden apartment in Middlesbrough in September 2010. The dilemma was if we could shed any light on how much (approximately) premium would be for a 90 year extension to my lease. Similar premises in Middlesbrough with an extended lease were in the region of £285,000. The mid-range amount of ground rent was £45 billed per annum. The lease finished in 2097. Considering the 71 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 not including fees.
Last Spring we were contacted by Dr L Bernard , who purchased a purpose-built flat in Middlesbrough in March 2010. The question was if we could approximate the price could be to extend the lease by an additional years. Similar premises in Middlesbrough with a long lease were in the region of £225,800. The mid-range ground rent payable was £60 billed quarterly. The lease finished in 2086. Given that there were 60 years left we estimated the compensation to the landlord to extend the lease to be within £23,800 and £27,400 plus expenses.