When it comes to long leasehold property in St Nicholas, you are in fact renting it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are less than 80 years remaining. Anyone in St Nicholas with a lease approaching 81 years left should seriously think of extending it as soon as possible. Once the lease term has below 80 years remaining, under the current statute the landlord is entitled to calculate and demand a greater premium, based on a technical computation, known as “marriage value” which is payable.
Leasehold premises in St Nicholas with in excess of one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Coventry Building Society | |
| Godiva Mortgages | |
| Skipton Building Society | |
| Royal Bank of Scotland |
Regardless of whether you are a tenant or a freeholder in St Nicholas,the lease extension lawyers 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 St Nicholas valuers.
Trailing lengthy negotiations with the freeholder of her basement flat in St Nicholas, Bethany started the lease extension process just as the lease was approaching the critical 80-year threshold. The transaction completed in November 2005. The landlord’s charges were kept to an absolute minimum.
Dr S François owned a ground floor flat in St Nicholas in September 1997. We are asked if we could shed any light on how much (approximately) premium would be to prolong the lease by an additional years. Identical residencies in St Nicholas with an extended lease were valued about £225,400. The mid-range amount of ground rent was £45 collected quarterly. The lease lapsed on 11 February 2090. Given that there were 64 years remaining we estimated the compensation to the landlord to extend the lease to be between £16,200 and £18,600 exclusive of fees.
Mr and Mrs. E Murphy was assigned a lease of a basement flat in St Nicholas in March 2009. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by ninety years. Comparable premises in St Nicholas with an extended lease were valued around £270,000. The mid-range ground rent payable was £55 collected every twelve months. The lease finished in 2101. Having 75 years remaining we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus fees.