When it comes to residential leasehold premises in Stockwood, you effectively rent it for a certain amount of time. These days 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 as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive notably when there are less than eighty years remaining. Anyone in Stockwood with a lease approaching 81 years unexpired should seriously consider extending it sooner rather than later. Once the lease term has below 80 years remaining, under the current Act the freeholder is entitled to calculate and levy a greater premium, assessed on a technical calculation, known as “marriage value” which is due.
Leasehold residencies in Stockwood with in excess of 100 years unexpired on the lease are often 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 to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Barnsley Building Society | |
| Birmingham Midshires | |
| Chelsea Building Society |
The conveyancing solicitors that we work with procure Stockwood 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.
14 months ago Muhammad, came dangerously close to the 80-year mark with the lease on his one bedroom flat in Stockwood. Having purchased his property twenty years previously, the unexpired term was of no relevance. Luckily, he noticed he needed to take steps soon on Extending the lease. Muhammad extended the lease just under the wire in March. Muhammad and the landlord who owned the flat above ultimately agreed on sum of £5,000 . If he had missed the deadline, the price would have escalated by a minimum £925.
Last Autumn we were e-mailed by Ms Victoria García , who took over the lease of a one bedroom apartment in Stockwood in January 2004. The question was if we could approximate the price would be for a 90 year extension to my lease. Comparative homes in Stockwood with 100 year plus lease were valued around £227,800. The average amount of ground rent was £45 collected yearly. The lease concluded in 2091. Having 65 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 plus fees.
In 2009 we were e-mailed by Mr and Mrs. R Petit who, having owned a studio apartment in Stockwood in April 1995. The dilemma was if we could estimate the premium would be to prolong the lease by a further 90 years. Identical homes in Stockwood with 100 year plus lease were in the region of £270,000. The average amount of ground rent was £55 collected annually. The lease finished in 2102. Taking into account 76 years unexpired we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus fees.