With a residential leasehold premises in Paddington, you are in fact renting it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially when there are fewer than 80 years remaining. Anyone in Paddington with a lease nearing 81 years left should seriously think of extending it without delay. When the lease term has below eighty years left, under the relevant Act the landlord is entitled to calculate and levy a larger premium, assessed on a technical calculation, known as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Barnsley Building Society | |
| Coventry Building Society | |
| Nationwide Building Society | |
| Royal Bank of Scotland |
Irrespective of whether you are a tenant or a freeholder in Paddington,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Paddington valuers.
Two years ago Jasper, started to get near to the eighty-year threshold with the lease on his one bedroom apartment in Paddington. Having purchased his property two decades ago, the length of the lease was of no concern. Thankfully, he recognised he would imminently be paying an escalated premium for Extending the lease. Jasper extended the lease at the eleventh hour last September. Jasper and the freeholder via the managing agents in the end agreed on sum of £5,000 . If he failed to meet the deadline, the price would have increased by at least £925.
Dr Lily Smith completed a one bedroom flat in Paddington in February 2005. The dilemma was if we could approximate the price would likely be to prolong the lease by a further 90 years. Comparable residencies in Paddington with an extended lease were worth £186,000. The mid-range amount of ground rent was £65 billed per annum. The lease termination date was in 2084. Given that there were 58 years remaining we calculated the compensation to the freeholder for the lease extension to be within £24,700 and £28,600 exclusive of costs.
An example of a Lease Extension decision for a Paddington premises is Flats 37 & 39 88/90 Portland Place in December 2010. The Tribunal determined that the premium payable for the lease extensions in respect of these two flats is as follows:- For Flat 37, the sum of £385,230.00 For Flat 39, the sum of £436,780.00 This case affected 2 flats. The unexpired term as at the valuation date was 24.02 years.