With a residential leasehold property in Mitcheldean, you are in fact renting it for a certain amount of time. In recent years 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 a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are less than 80 years left. Residents in Mitcheldean with a lease nearing 81 years remaining should seriously consider extending it sooner as opposed to later. 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 multiplication, known as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Coventry Building Society | |
| Leeds Building Society | |
| Nationwide Building Society | |
| Virgin |
Irrespective of whether you are a tenant or a freeholder in Mitcheldean,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Mitcheldean valuers.
Nathan owned a studio flat in Mitcheldean on the market with a lease of a few days over 61 years outstanding. Nathan on an informal basis approached his freeholder a well known local-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 per annum. Ordinarily, ground rent would not be due on a lease extension were Nathan to invoke his statutory right. Nathan obtained expert legal guidance and was able to make an informed decision and handle with the matter and sell the flat.
In 2009 we were phoned by Dr Reuben Taylor who, having completed a purpose-built apartment in Mitcheldean in February 1995. The question was if we could approximate the premium would be to prolong the lease by a further 90 years. Comparable properties in Mitcheldean with a long lease were valued around £270,000. The average ground rent payable was £55 billed monthly. The lease finished in 2101. Considering the 75 years unexpired we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus professional charges.
In 2009 we were approached by Mr and Mrs. C Garcia who, having owned a studio apartment in Mitcheldean in January 1995. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year lease extension. Similar premises in Mitcheldean with a long lease were valued around £173,800. The average amount of ground rent was £60 collected yearly. The lease ran out on 15 November 2081. Considering the 55 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £31,400 and £36,200 plus professional charges.