When it comes to domestic leasehold premises in St George, you are actually purchasing a right to live in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear 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 number of years is the cost of extending the lease increases markedly particularly when there are less than eighty years remaining. Anyone in St George with a lease nearing 81 years left should seriously think of extending it as soon as possible. Once the lease term has under 80 years outstanding, under the relevant statute the freeholder is entitled to calculate and charge a larger amount, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold premises in St George with more than one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Birmingham Midshires | |
| National Westminster Bank | |
| Nationwide Building Society | |
| Royal Bank of Scotland |
Lease extensions in St George can be a difficult process. We recommend you secure professional help from a conveyancer and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with St George lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Tommy, started to get close to the 80-year threshold with the lease on his purpose- built flat in St George. Having purchased his flat 19 years ago, the length of the lease was of minimal bearing. As luck would have it, he realised he needed to take action soon on Extending the lease. Tommy was able to extend his lease just ahead of time last July. Tommy and the landlord who owned the flat above eventually settled on sum of £6,000 . If the lease had dipped below eighty years, the premium would have become more exhorbitant by a minimum £1,125.
Mr and Mrs. B Martinez completed a studio flat in St George in August 1995. We are asked if we could shed any light on how much (approximately) price could be for a 90 year lease extension. Comparative flats in St George with 100 year plus lease were in the region of £300,000. The average amount of ground rent was £50 collected annually. The lease ended in 2102. Having 76 years as a residual term we estimated the premium to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of legals.
Last year we were called by Mr and Mrs. T Gómez , who was assigned a lease of a basement flat in St George in March 2004. The dilemma was if we could approximate the price could be for a 90 year extension to my lease. Comparable premises in St George with an extended lease were valued about £257,800. The mid-range amount of ground rent was £65 collected monthly. The lease ran out in 2091. Considering the 65 years outstanding we calculated the premium to the freeholder for the lease extension to be within £18,100 and £20,800 not including fees.