When it comes to long leasehold property in Pershore, you effectively rent it for a certain period of time. Modern 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 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 when there are fewer than 80 years remaining. Leasehold owners in Pershore with a lease approaching 81 years left should seriously consider extending it without delay. When the lease term has under eighty years outstanding, under the relevant statute the landlord is entitled to calculate and charge a greater premium, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.
It is generally considered that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service gives you better control over the value of your Pershore leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Archie, started to get near to the eighty-year threshold with the lease on his purpose- built apartment in Pershore. Having bought his home twenty years previously, the length of the lease was of little significance. As luck would have it, he became aware that he needed to take steps soon on Extending the lease. Archie arranged for a lease extension at the eleventh hour in May. Archie and the freeholder ultimately settled on sum of £5,500 . If the lease had fallen below 80 years, the amount would have escalated by at least £925.
In 2011 we were called by Dr L Murphy who, having completed a one bedroom apartment in Pershore in April 1998. We are asked if we could approximate the premium would likely be for a 90 year extension to my lease. Similar flats in Pershore with a long lease were valued around £227,800. The mid-range ground rent payable was £45 billed yearly. The lease ended on 15 February 2090. Having 65 years unexpired we estimated the premium to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of professional charges.
Last Winter we were called by Mr U Richardson , who moved into a garden flat in Pershore in January 2008. The dilemma was if we could approximate the compensation to the landlord would be to extend the lease by 90 years. Comparable residencies in Pershore with a long lease were in the region of £270,000. The average ground rent payable was £55 billed per annum. The lease expired in 2101. Having 76 years remaining we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of expenses.