With a long leasehold property in Ormskirk, you are actually purchasing a right to live in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive notably when there are fewer than 80 years left. Leasehold owners in Ormskirk with a lease approaching 81 years remaining should seriously consider extending it without delay. When the lease term has under eighty years left, under the relevant statute the freeholder can calculate and charge a greater amount, assessed on a technical multiplication, known as “marriage value” which is due.
It is generally accepted that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Birmingham Midshires | |
| Coventry Building Society | |
| Godiva Mortgages | |
| Skipton Building Society |
Retaining our service gives you increased control over the value of your Ormskirk leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Jack was the the leasehold proprietor of a conversion flat in Ormskirk on the market with a lease of fraction over fifty eight years remaining. Jack on an informal basis approached his freeholder a well known Bristol-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £150 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Jack to invoke his statutory right. Jack obtained expert legal guidance and was able to make a more informed decision and handle with the matter and sell the property.
Mrs K Edwards completed a one bedroom apartment in Ormskirk in November 2012. We are asked if we could estimate the price would be to extend the lease by a further 90 years. Comparative premises in Ormskirk with an extended lease were valued about £285,000. The average amount of ground rent was £55 billed per annum. The lease lapsed in 2105. Taking into account 79 years left we approximated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of fees.
In 2009 we were called by Mr and Mrs. R Ali who, having moved into a ground floor apartment in Ormskirk in August 1999. We are asked if we could approximate the price would be to extend the lease by 90 years. Identical premises in Ormskirk with an extended lease were valued around £193,400. The average ground rent payable was £65 invoiced annually. The lease ran out on 13 January 2085. Taking into account 59 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £21,900 and £25,200 not including expenses.