With a domestic leasehold premises in Speke, you are actually purchasing a right to live in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about 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 greater especially once there are fewer than 80 years remaining. Residents in Speke with a lease approaching 81 years unexpired should seriously think of extending it sooner than later. Once a lease has under eighty years remaining, under the relevant statute the freeholder can calculate and demand a greater amount, based on a technical calculation, known as “marriage value” which is due.
Leasehold residencies in Speke with over 100 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 home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | |
| Halifax | |
| Leeds Building Society | |
| Nationwide Building Society | |
| Yorkshire Building Society |
The conveyancing solicitors that we work with procure Speke lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Jack was the the leasehold owner of a high value flat in Speke on the market with a lease of a few days over sixty years outstanding. Jack informally approached his landlord a well known Bristol-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 annually. No ground rent would be due on a lease extension were Jack to invoke his statutory right. Jack procured expert advice and was able to make an informed judgement and deal with the matter and sell the flat.
In 2012 we were approached by Dr V Clarke who, having moved into a one bedroom apartment in Speke in October 2008. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by ninety years. Comparable premises in Speke with an extended lease were in the region of £200,800. The average amount of ground rent was £65 billed yearly. The lease terminated on 3 February 2086. Given that there were 60 years left we approximated the premium to the freeholder to extend the lease to be within £20,900 and £24,200 exclusive of fees.
In 2011 we were e-mailed by Ms Isabelle Hall who, having owned a basement flat in Speke in February 2004. The question was if we could estimate the price would likely be to prolong the lease by ninety years. Comparable residencies in Speke with 100 year plus lease were valued about £260,000. The mid-range ground rent payable was £50 collected monthly. The lease termination date was in 2097. Considering the 71 years remaining we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus fees.