When it comes to long leasehold premises in Nether Stowey, you are actually buying a right to live in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner as opposed to later. Accepted thinking 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 Nether Stowey with a lease drawing near to 81 years left should seriously think of extending it as soon as possible. When the lease term has less than 80 years left, under the relevant statute the freeholder can calculate and demand a greater premium, assessed on a technical computation, known as “marriage value” which is due.
It is conventional wisdom that a property with over 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Godiva Mortgages | |
| Skipton Building Society | |
| The Mortgage Works | |
| Royal Bank of Scotland |
The conveyancers that we work with handle Nether Stowey 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 lawyer we work with provide it.
In the wake of 9 months of lengthy correspondence with the landlord of her garden flat in Nether Stowey, Phoebe started the lease extension process just as the lease was coming close to the crucial 80-year deadline. The legal work completed in September 2013. The freeholder’s charges were kept to an absolute minimum.
In 2009 we were contacted by Mr Joseph Clarke who, having owned a studio flat in Nether Stowey in January 2006. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by an additional years. Comparative flats in Nether Stowey with 100 year plus lease were worth £171,800. The mid-range amount of ground rent was £55 collected yearly. The lease end date was on 4 July 2076. Considering the 50 years outstanding we approximated the compensation to the landlord for the lease extension to be within £33,300 and £38,400 plus costs.
In 2010 we were contacted by Mr and Mrs. M Hall who, having moved into a studio flat in Nether Stowey in May 1999. The question was if we could estimate the price would likely be for a ninety year lease extension. Comparable residencies in Nether Stowey with a long lease were worth £280,000. The mid-range ground rent payable was £45 billed every twelve months. The lease came to a finish in 2096. Having 70 years unexpired we approximated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of costs.