When it comes to domestic leasehold premises in Port Clarence, you are actually purchasing an entitlement to reside in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may consider 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 once there are less than eighty years left. Leasehold owners in Port Clarence with a lease drawing near to 81 years unexpired should seriously think of extending it as soon as possible. When a lease has fewer than eighty years remaining, under the relevant Act the landlord can calculate and levy a larger amount, based on a technical computation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
The lawyers that we work with procure Port Clarence 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.
Jasper was the the leasehold owner of a high value flat in Port Clarence on the market with a lease of a little over 72 years outstanding. Jasper informally spoke with his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 yearly. No ground rent would be due on a lease extension were Jasper to exercise his statutory right. Jasper obtained expert advice and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
Mr Jackson Alexander acquired a recently refurbished apartment in Port Clarence in August 1998. The dilemma was if we could approximate the premium would likely be to prolong the lease by a further 90 years. Identical premises in Port Clarence with a long lease were in the region of £265,200. The average ground rent payable was £65 collected every twelve months. The lease ran out on 16 February 2092. Considering the 66 years unexpired we approximated the premium to the landlord for the lease extension to be within £15,200 and £17,600 not including legals.
Dr George Davies owned a newly refurbished apartment in Port Clarence in March 2005. The dilemma was if we could shed any light on how much (roughly) price would likely be for a 90 year extension to my lease. Comparative flats in Port Clarence with 100 year plus lease were valued about £198,800. The mid-range amount of ground rent was £55 billed every twelve months. The lease ran out on 15 September 2081. Having 55 years outstanding we calculated the compensation to the landlord to extend the lease to be within £33,300 and £38,400 plus costs.