When it comes to residential leasehold premises in Northfield, you are actually purchasing a right to reside in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive especially when there are fewer than 80 years left. Leasehold owners in Northfield with a lease nearing 81 years left should seriously think of extending it as soon as possible. When a lease has fewer than 80 years left, under the current statute the landlord can calculate and levy a greater premium, assessed on a technical computation, known as “marriage value” which is due.
Leasehold properties in Northfield with more than one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | |
| Godiva Mortgages | |
| Halifax | |
| Nationwide Building Society | |
| Skipton Building Society |
The conveyancers that we work with handle Northfield 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 conveyancer we work with provide it.
Subsequent to lengthy negotiations with the freeholder of her leasehold flat in Northfield, Sarah initiated the lease extension process just as the lease was approaching the critical eighty-year deadline. The legal work was concluded in March 2015. The landlord’s fees were restricted to under 700 GBP.
In 2010 we were approached by Dr F Collins who, having moved into a studio flat in Northfield in July 1996. We are asked if we could estimate the price would likely be to extend the lease by a further 90 years. Comparative premises in Northfield with an extended lease were in the region of £255,000. The average ground rent payable was £50 collected monthly. The lease concluded in 2097. Taking into account 71 years left we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of expenses.
Last May we were contacted by Mr K Ricardo , who bought a newly refurbished flat in Northfield in October 2002. The question was if we could estimate the premium could be to prolong the lease by an additional years. Similar flats in Northfield with 100 year plus lease were valued around £249,200. The average ground rent payable was £60 invoiced every twelve months. The lease terminated on 7 October 2077. Having 51 years as a residual term we calculated the premium to the landlord for the lease extension to be within £42,800 and £49,400 plus fees.