When it comes to long leasehold premises in St Columb, you effectively rent it for a certain period 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 may consider a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially once there are less than 80 years left. Anyone in St Columb with a lease approaching 81 years remaining should seriously think of extending it as soon as possible. Once the lease term has below 80 years outstanding, under the relevant Act the landlord can calculate and charge a larger amount, assessed on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold properties in St Columb with in excess of one hundred years outstanding on the lease are often regarded as a ‘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 service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Chelsea Building Society | |
| Leeds Building Society | |
| Skipton Building Society | |
| TSB |
Retaining our service will provide you better control over the value of your St Columb leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
14 months ago Finley, started to get close to the eighty-year mark with the lease on his basement flat in St Columb. Having purchased his flat 19 years previously, the length of the lease was of minimal concern. As luck would have it, he became aware that he needed to take steps soon on a lease extension. Finley arranged for a lease extension just in the nick of time in June. Finley and the landlord who owned the flat above in the end settled on a premium of £5,000 . If the lease had slipped lower than 80 years, the price would have escalated by at least £950.
In 2012 we were approached by Mr and Mrs. S Gunderson who, having owned a ground floor flat in St Columb in July 2006. The dilemma was if we could estimate the price would likely be for a 90 year extension to my lease. Comparative homes in St Columb with an extended lease were valued around £243,000. The mid-range amount of ground rent was £65 collected annually. The lease came to a finish in 2089. Having 63 years remaining we estimated the compensation to the landlord for the lease extension to be between £20,000 and £23,000 plus fees.
Dr Bethany Adams purchased a one bedroom flat in St Columb in October 1996. The question was if we could approximate the premium would be to extend the lease by ninety years. Identical flats in St Columb with 100 year plus lease were worth £181,600. The mid-range ground rent payable was £55 billed per annum. The lease terminated on 1 November 2078. Taking into account 52 years left we calculated the premium to the landlord to extend the lease to be between £30,400 and £35,200 not including legals.