With a domestic leasehold property in Peterborough, you effectively rent it for a certain amount 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 should consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are fewer than 80 years remaining. Residents in Peterborough with a lease nearing 81 years remaining should seriously think of extending it without delay. When the lease term has under eighty years remaining, under the current legislation the landlord is entitled to calculate and demand a larger amount, based on a technical multiplication, known as “marriage value” which is due.
Leasehold residencies in Peterborough with in excess of one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Nationwide Building Society | |
| Santander | |
| TSB | |
| Royal Bank of Scotland |
The conveyancing solicitors that we work with procure Peterborough 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 conveyancer we work with provide it.
Last October Muhammad, came precariously close to the 80-year mark with the lease on his leasehold flat in Peterborough. Having bought his property two decades ago, the length of the lease was of no concern. Luckily, it dawned on him that he needed to take steps soon on Extending the lease. Muhammad arranged for a lease extension just under the wire in May. Muhammad and the landlord subsequently agreed on the final figure of £6,000 . If he not met the deadline, the sum would have escalated by a minimum £1,000.
In 2010 we were contacted by Mr and Mrs. L Pérez who, having purchased a one bedroom flat in Peterborough in May 2004. We are asked if we could estimate the price would be for a 90 year extension to my lease. Comparative properties in Peterborough with a long lease were in the region of £191,000. The average amount of ground rent was £65 invoiced per annum. The lease concluded on 26 August 2084. Considering the 58 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £23,800 and £27,400 plus expenses.
Mrs Phoebe García was assigned a lease of a purpose-built flat in Peterborough in October 2000. We are asked if we could approximate the price would be for a 90 year extension to my lease. Identical residencies in Peterborough with an extended lease were in the region of £250,000. The average amount of ground rent was £50 invoiced yearly. The lease terminated on 2 March 2095. Taking into account 69 years left we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus fees.