With a domestic leasehold premises in Shenley Church End, you are in fact renting it for a certain period of time. In recent years 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 may consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive especially when there are fewer than eighty years remaining. Anyone in Shenley Church End with a lease nearing 81 years left should seriously consider extending it without delay. Once a lease has fewer than eighty years left, under the current Act the freeholder is entitled to calculate and levy a greater premium, based on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold properties in Shenley Church End with in excess of one hundred years outstanding 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 upside in buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Chelsea Building Society | |
| Santander | |
| TSB |
Irrespective of whether you are a tenant or a landlord in Shenley Church End,the lease extension lawyers 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 Shenley Church End valuers.
Last Spring Alex, started to get near to the 80-year mark with the lease on his purpose- built apartment in Shenley Church End. Having bought his home twenty years previously, the lease term was of little relevance. Thankfully, he became aware that he would soon be paying an escalated premium for Extending the lease. Alex was able to extend his lease at the eleventh hour in September. Alex and the freeholder via the managing agents subsequently settled on a premium of £6,000 . If he failed to meet the deadline, the sum would have gone up by at least £975.
Last Winter we were approach by Mr I Davies , who took over the lease of a basement apartment in Shenley Church End in March 2000. We are asked if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Similar premises in Shenley Church End with a long lease were valued about £206,200. The average ground rent payable was £55 invoiced monthly. The lease terminated in 2082. Considering the 56 years outstanding we approximated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 not including costs.
Last month we were called by Ms H Kelly , who purchased a recently refurbished flat in Shenley Church End in January 2005. The dilemma was if we could estimate the premium would be for a 90 year lease extension. Identical flats in Shenley Church End with a long lease were in the region of £300,000. The average amount of ground rent was £50 collected annually. The lease expired on 6 September 2102. Given that there were 76 years remaining we approximated the premium to the landlord to extend the lease to be within £8,600 and £9,800 not including legals.