Peterborough leases on domestic deteriorating in value. Where your lease has about ninety years unexpired, you should start thinking about a lease extension. If lease term is less than eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Peterborough will usually qualify for a lease extension; however a solicitor should be able check if you qualify. In some situations you may not be entitled. There are prescribed deadlines and formalities to comply with once the process has started so it’s sensible to be guided by a lawyer during the process.
Leasehold premises in Peterborough with over one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Birmingham Midshires | |
| Leeds Building Society | |
| Santander | |
| Skipton Building Society |
Regardless of whether you are a tenant or a landlord in Peterborough,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Peterborough valuers.
Harry owned a 2 bedroom apartment in Peterborough on the market with a lease of fraction over 72 years unexpired. Harry on an informal basis contacted his landlord being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £150 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Harry to invoke his statutory right. Harry obtained expert advice and secured an acceptable deal without going to tribunal and readily saleable.
Last September we were phoned by Mrs Aimee Jones , who moved into a purpose-built apartment in Peterborough in April 2011. We are asked if we could shed any light on how much (roughly) premium would be for a ninety year extension to my lease. Identical properties in Peterborough with an extended lease were in the region of £235,200. The average amount of ground rent was £45 invoiced quarterly. The lease lapsed in 2092. Having 66 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 not including professional charges.
Last year we were phoned by Mrs Y Richardson , who owned a basement flat in Peterborough in July 2011. The dilemma was if we could approximate the premium would be to extend the lease by ninety years. Similar flats in Peterborough with a long lease were valued about £280,000. The average ground rent payable was £55 invoiced annually. The lease expiry date was in 2103. Considering the 77 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of legals.