When it comes to long leasehold premises in Southwold, you are actually buying an entitlement to live in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should think about extending the lease sooner rather than 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 eighty years left. Anyone in Southwold with a lease approaching 81 years remaining should seriously consider extending it as soon as possible. Once a lease has below 80 years left, under the relevant Act the landlord can calculate and levy a larger amount, based on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold premises in Southwold with more than one hundred years remaining 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 situations 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 | |
| Godiva Mortgages | |
| Leeds Building Society | |
| The Mortgage Works |
Regardless of whether you are a tenant or a freeholder in Southwold,the lease extension experts 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 Southwold valuers.
Last Spring Daniel, came critically near to the 80-year threshold with the lease on his first floor flat in Southwold. Having bought his home 18 years previously, the lease term was of minimal concern. Fortunately, he noticed he needed to take action soon on Extending the lease. Daniel extended the lease just under the wire in August. Daniel and the freeholder via the managing agents in the end settled on a premium of £5,000 . If he failed to meet the deadline, the amount would have gone up by at least £1,075.
Last Spring we were approach by Dr Sophia Murphy , who bought a first floor apartment in Southwold in August 1996. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by 90 years. Similar premises in Southwold with an extended lease were in the region of £280,000. The average ground rent payable was £45 invoiced quarterly. The lease elapsed on 6 August 2095. Given that there were 69 years remaining we estimated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 plus legals.
Last Winter we were called by Ms Alice Young , who took over the lease of a garden flat in Southwold in June 2002. The dilemma was if we could approximate the price would be for a 90 year lease extension. Comparative premises in Southwold with an extended lease were in the region of £216,000. The mid-range ground rent payable was £60 collected yearly. The lease terminated in 2084. Taking into account 58 years unexpired we calculated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 not including fees.