With a residential leasehold premises in Oadby, you are actually buying a right to live in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive particularly once there are less than eighty years left. Leasehold owners in Oadby with a lease approaching 81 years remaining should seriously think of extending it sooner rather than later. When a lease has under eighty years outstanding, under the current statute the freeholder is entitled to calculate and demand a larger amount, based on a technical calculation, known as “marriage value” which is payable.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | |
| Coventry Building Society | |
| National Westminster Bank | |
| Nationwide Building Society | |
| TSB |
The conveyancing solicitors that we work with procure Oadby 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 2014 Stanley, came perilously close to the 80-year threshold with the lease on his one bedroom apartment in Oadby. In buying his flat 18 years previously, the lease term was of minimal concern. by good luck, he noticed he would soon be paying way over the odds for a lease extension. Stanley extended the lease at the eleventh hour last March. Stanley and the landlord who owned the flat above subsequently agreed on sum of £5,000 . If the lease had descended to less than eighty years, the figure would have escalated by at least £875.
Last Spring we were approach by Ms L Lambert , who took over the lease of a ground floor apartment in Oadby in May 2010. We are asked if we could approximate the premium could be for a ninety year extension to my lease. Similar residencies in Oadby with a long lease were valued about £206,200. The mid-range ground rent payable was £60 billed per annum. The lease terminated in 2082. Given that there were 56 years left we calculated the premium to the freeholder to extend the lease to be between £32,300 and £37,400 exclusive of legals.
Last Autumn we were called by Dr M Cox , who bought a ground floor flat in Oadby in September 2011. The dilemma was if we could estimate the price would likely be to extend the lease by 90 years. Comparative residencies in Oadby with 100 year plus lease were in the region of £300,000. The average ground rent payable was £50 invoiced quarterly. The lease came to a finish in 2102. Considering the 76 years remaining we calculated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of professional charges.