With a domestic leasehold premises in Mitcheldean, you are actually purchasing a right to live in a property for a set period of time. 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 consider extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive especially once there are fewer than eighty years remaining. Anyone in Mitcheldean with a lease drawing near to 81 years remaining should seriously consider extending it without delay. Once a lease has below eighty years left, under the current statute the freeholder is entitled to calculate and charge a greater premium, based on a technical calculation, known as “marriage value” which is due.
It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Godiva Mortgages | |
| Leeds Building Society | |
| TSB | |
| Virgin |
The lawyers that we work with handle Mitcheldean 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.
Jackson was the the leasehold owner of a studio apartment in Mitcheldean being marketed with a lease of a few days over 72 years outstanding. Jackson informally contacted his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 per annum. Ordinarily, ground rent would not be due on a lease extension were Jackson to invoke his statutory right. Jackson obtained expert advice and secured an acceptable resolution without resorting to tribunal and sell the property.
In 2014 we were e-mailed by Mrs Rhiannon Stewart who, having moved into a studio apartment in Mitcheldean in July 2006. We are asked if we could shed any light on how much (roughly) price could be to prolong the lease by ninety years. Similar residencies in Mitcheldean with an extended lease were valued around £218,000. The mid-range amount of ground rent was £45 collected monthly. The lease concluded in 2089. Having 63 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £17,100 and £19,800 exclusive of fees.
Mr Mason Nguyen was assigned a lease of a basement apartment in Mitcheldean in September 1997. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by a further 90 years. Comparable flats in Mitcheldean with a long lease were valued about £270,000. The average ground rent payable was £55 collected every twelve months. The lease concluded in 2100. Considering the 74 years unexpired we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including fees.