With a residential leasehold property in Southwold, you are in fact renting it for a certain period of time. In recent years flat leases are usually granted 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. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately greater notably when there are less than eighty years left. Anyone in Southwold with a lease drawing near to 81 years remaining should seriously think of extending it without delay. When the lease term has below eighty years left, under the current legislation the landlord can calculate and levy a greater amount, assessed on a technical multiplication, known as “marriage value” which is payable.
Leasehold premises in Southwold with over 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Chelsea Building Society | |
| Halifax | |
| Leeds Building Society | |
| TSB |
Irrespective of whether you are a tenant or a landlord in Southwold,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Southwold valuers.
Trailing protracted negotiations with the freeholder of her garden apartment in Southwold, Alicia initiated the lease extension process as the 80 year threshold was rapidly coming. The legal work was finalised in August 2013. The landlord’s charges were negotiated to under 500 pounds.
Last Christmas we were phoned by Mr and Mrs. Y Smith , who took over the lease of a one bedroom apartment in Southwold in April 2004. We are asked if we could approximate the price would be for a 90 year extension to my lease. Identical properties in Southwold with an extended lease were in the region of £208,600. The mid-range amount of ground rent was £60 collected yearly. The lease expired on 7 April 2083. Given that there were 57 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £30,400 and £35,200 plus fees.
Last month we were called by Ms Elizabeth Flores , who owned a basement flat in Southwold in June 2004. The question was if we could estimate the premium would likely be to prolong the lease by 90 years. Similar homes in Southwold with 100 year plus lease were in the region of £200,000. The average ground rent payable was £50 collected yearly. The lease came to a finish in 2103. Considering the 77 years left we calculated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 plus expenses.