When it comes to domestic leasehold property in Sheldon, you effectively rent it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should think about extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially when there are fewer than 80 years left. Leasehold owners in Sheldon with a lease nearing 81 years remaining should seriously think of extending it without delay. Once the lease term has below 80 years left, under the relevant legislation the freeholder can calculate and charge a larger amount, based on a technical calculation, strangely termed as “marriage value” which is due.
It is generally accepted that a residential leasehold with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Coventry Building Society | |
| Godiva Mortgages | |
| Halifax | |
| Yorkshire Building Society |
Using our service will provide you increased control over the value of your Sheldon leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Luke was the the leasehold owner of a studio flat in Sheldon being marketed with a lease of just over 59 years left. Luke on an informal basis contacted his landlord a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Luke to exercise his statutory right. Luke procured expert legal guidance and was able to make a more informed judgement and handle with the matter and sell the flat.
Last Spring we were approach by Ms Holly Johnson , who completed a one bedroom apartment in Sheldon in May 2009. We are asked if we could approximate the compensation to the landlord would be to extend the lease by 90 years. Identical properties in Sheldon with an extended lease were in the region of £285,000. The mid-range amount of ground rent was £55 billed every twelve months. The lease concluded in 2106. Considering the 80 years outstanding we approximated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of expenses.
In 2011 we were called by Ms V Moore who, having bought a garden apartment in Sheldon in November 2002. We are asked if we could approximate the premium would likely be to prolong the lease by a further 90 years. Identical homes in Sheldon with an extended lease were worth £200,800. The average amount of ground rent was £65 collected per annum. The lease came to a finish in 2086. Taking into account 60 years unexpired we approximated the compensation to the landlord for the lease extension to be between £20,900 and £24,200 not including legals.