When it comes to domestic leasehold premises in Paulton, you are in fact renting it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive notably once there are less than eighty years remaining. Anyone in Paulton with a lease drawing near to 81 years remaining should seriously consider extending it as soon as possible. Once the lease term has fewer than 80 years remaining, under the current Act the freeholder can calculate and demand a larger premium, based on a technical computation, strangely termed as “marriage value” which is due.
It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Paulton can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Paulton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following unsuccessful discussions with the landlord of her first floor apartment in Paulton, Elizabeth commenced the lease extension process as the eighty year threshold was rapidly nearing. The lease extension was finalised in June 2013. The freeholder’s costs were restricted to under 600 pounds.
In 2010 we were approached by Ms Francesca Gunderson who, having completed a first floor apartment in Paulton in November 1997. The dilemma was if we could shed any light on how much (roughly) price would be to prolong the lease by ninety years. Comparative residencies in Paulton with 100 year plus lease were worth £218,000. The average amount of ground rent was £45 billed annually. The lease expired on 19 November 2088. Taking into account 63 years unexpired we estimated the premium to the freeholder for the lease extension to be within £17,100 and £19,800 plus professional charges.
Ms C Mason bought a garden flat in Paulton in July 2000. The dilemma was if we could estimate the premium could be to prolong the lease by a further 90 years. Comparative properties in Paulton with 100 year plus lease were in the region of £265,000. The mid-range amount of ground rent was £55 billed per annum. The lease end date was in 2099. Given that there were 74 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including professional charges.