When it comes to residential leasehold premises in Sedgefield, you are actually buying an entitlement to live in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should consider a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive especially once there are less than eighty years remaining. Anyone in Sedgefield with a lease nearing 81 years left should seriously consider extending it as soon as possible. Once a lease has under 80 years left, under the current statute the landlord can calculate and charge a larger amount, based on a technical calculation, known as “marriage value” which is due.
It is generally accepted that a property with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Chelsea Building Society | |
| Halifax | |
| National Westminster Bank | |
| Skipton Building Society |
The lawyers that we work with handle Sedgefield 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.
After protracted correspondence with the landlord of her garden apartment in Sedgefield, Mollie initiated the lease extension process just as the lease was nearing the all-important 80-year mark. The lease extension was concluded in June 2011. The freeholder’s costs were restricted to less than 450 GBP.
Last Autumn we were approach by Mr Alexander Khan , who completed a basement apartment in Sedgefield in June 2004. The question was if we could shed any light on how much (approximately) premium could be for a ninety year lease extension. Comparative residencies in Sedgefield with a long lease were in the region of £227,800. The average ground rent payable was £45 collected every twelve months. The lease termination date was in 2091. Taking into account 65 years left we estimated the premium to the landlord to extend the lease to be between £13,300 and £15,400 plus expenses.
Dr D Nguyen purchased a basement flat in Sedgefield in March 1997. The dilemma was if we could approximate the premium could be for a ninety year lease extension. Identical flats in Sedgefield with 100 year plus lease were in the region of £275,000. The average amount of ground rent was £55 invoiced monthly. The lease finished in 2102. Having 76 years left we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including legals.