When it comes to long leasehold premises in Rainford, you are actually buying an entitlement to reside in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may think about extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately greater especially when there are less than 80 years left. Leasehold owners in Rainford with a lease approaching 81 years left should seriously consider extending it sooner than later. Once the lease term has below eighty years left, under the relevant legislation the freeholder is entitled to calculate and demand a greater premium, assessed on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold premises in Rainford with more than 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Chelsea Building Society | |
| Godiva Mortgages | |
| Leeds Building Society | |
| Skipton Building Society |
Using our service will provide you increased control over the value of your Rainford leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following protracted discussions with the freeholder of her studio apartment in Rainford, Katie started the lease extension process as the eighty year mark was rapidly nearing. The transaction completed in March 2014. The landlord’s costs were kept to an absolute minimum.
Last Winter we were contacted by Dr H Sharif , who owned a one bedroom apartment in Rainford in June 2006. The question was if we could estimate the premium would be to extend the lease by a further 90 years. Comparative residencies in Rainford with an extended lease were in the region of £176,200. The mid-range amount of ground rent was £65 billed every twelve months. The lease came to a finish on 24 June 2082. Having 56 years remaining we calculated the compensation to the freeholder for the lease extension to be between £29,500 and £34,000 exclusive of legals.
Mr and Mrs. O Rivera took over the lease of a first floor flat in Rainford in June 2004. We are asked if we could approximate the premium would likely be to extend the lease by 90 years. Comparable residencies in Rainford with 100 year plus lease were valued about £242,600. The mid-range ground rent payable was £45 invoiced annually. The lease expired on 1 September 2093. Having 67 years remaining we calculated the premium to the landlord to extend the lease to be between £11,400 and £13,200 exclusive of expenses.