With a domestic leasehold premises in Sewardstonebury, you effectively rent it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are less than 80 years remaining. Anyone in Sewardstonebury with a lease approaching 81 years remaining should seriously consider extending it sooner than later. Once the lease term has under eighty years remaining, under the current legislation the freeholder can calculate and demand a larger premium, based on a technical computation, known as “marriage value” which is payable.
It is conventional wisdom that a property with more than one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Irrespective of whether you are a tenant or a landlord in Sewardstonebury,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Sewardstonebury valuers.
Half a year ago Kyle, started to get near to the 80-year mark with the lease on his studio apartment in Sewardstonebury. In buying his property twenty years ago, the lease term was of no relevance. Luckily, it dawned on him that he needed to take steps soon on a lease extension. Kyle was able to extend his lease just ahead of time last March. Kyle and the freeholder via the management company eventually agreed on a premium of £5,000 . If he failed to meet the deadline, the sum would have gone up by a minimum £925.
Dr Austin Martin acquired a studio flat in Sewardstonebury in July 2008. The dilemma was if we could estimate the premium would be for a ninety year extension to my lease. Similar flats in Sewardstonebury with a long lease were valued around £235,200. The mid-range amount of ground rent was £45 collected annually. The lease expired in 2091. Taking into account 66 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 plus expenses.
Mr and Mrs. I Anderson was assigned a lease of a purpose-built flat in Sewardstonebury in August 2002. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by a further 90 years. Comparable properties in Sewardstonebury with an extended lease were worth £280,000. The mid-range ground rent payable was £55 collected every twelve months. The lease end date was in 2102. Taking into account 77 years remaining we approximated the premium to the landlord to extend the lease to be between £13,300 and £15,400 plus fees.