With a domestic leasehold premises in Otford, you are actually buying a right to live in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may consider extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are less than eighty years remaining. Anyone in Otford with a lease nearing 81 years remaining should seriously think of extending it as soon as possible. When a lease has less than 80 years left, under the relevant legislation the landlord is entitled to calculate and charge a greater amount, based on a technical calculation, known as “marriage value” which is payable.
Leasehold premises in Otford with more than one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barclays plc | |
| Barnsley Building Society | |
| Nationwide Building Society | |
| Royal Bank of Scotland |
The lawyers that we work with procure Otford 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.
After protracted negotiations with the freeholder of her one bedroom apartment in Otford, Melissa commenced the lease extension process as the 80 year threshold was fast coming. The legal work completed in February 2013. The landlord’s costs were kept to an absolute minimum.
Dr T Smith completed a newly refurbished apartment in Otford in April 2000. The dilemma was if we could estimate the premium would likely be for a ninety year lease extension. Comparative homes in Otford with 100 year plus lease were worth £250,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease finished on 23 July 2095. Given that there were 69 years outstanding we calculated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including expenses.
Last year we were called by Mr and Mrs. W Kelly , who owned a one bedroom apartment in Otford in February 2009. The dilemma was if we could approximate the premium would be for a ninety year lease extension. Comparative residencies in Otford with 100 year plus lease were valued around £285,000. The mid-range amount of ground rent was £55 billed quarterly. The lease came to a finish on 28 February 2106. Taking into account 80 years outstanding we approximated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of costs.