When it comes to residential leasehold property in Rugby, you effectively rent it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should 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 notably once there are fewer than 80 years remaining. Leasehold owners in Rugby with a lease nearing 81 years left should seriously consider extending it as soon as possible. Once a lease has below 80 years outstanding, under the relevant legislation the freeholder can calculate and demand a larger premium, assessed on a technical multiplication, known as “marriage value” which is payable.
Leasehold premises in Rugby with in excess of one hundred years left 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 circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Barnsley Building Society | |
| Godiva Mortgages | |
| Leeds Building Society | |
| TSB |
The lawyers that we work with undertake Rugby 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 conveyancing solicitor we work with provide it.
Charlie owned a conversion apartment in Rugby on the market with a lease of just over 59 years left. Charlie informally approached his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £50 per annum. No ground rent would be due on a lease extension were Charlie to invoke his statutory right. Charlie procured expert legal guidance and was able to make an informed decision and handle with the matter and readily saleable.
Last Autumn we were contacted by Mr and Mrs. P López , who bought a ground floor flat in Rugby in January 2002. The question was if we could approximate the compensation to the landlord would be to prolong the lease by ninety years. Comparable homes in Rugby with 100 year plus lease were worth £250,000. The average ground rent payable was £50 billed annually. The lease termination date was on 26 October 2095. Considering the 69 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of costs.
Mr and Mrs. U Young bought a first floor flat in Rugby in August 2000. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by an additional years. Identical premises in Rugby with a long lease were worth £285,000. The average amount of ground rent was £55 collected yearly. The lease lapsed in 2106. Given that there were 80 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of legals.